United Natural Foods (UNFI) fiscal 2027 profit outlook could offset some caution around its top line, with productivity initiatives expected to support earnings growth, UBS said in a note emailed Wednesday.
The company expects fiscal 2027 net sales of $31.2 billion to $31.8 billion, implying about 1.1% growth at the midpoint. UBS said the outlook likely builds in some conservatism as the macro environment in food retail remains challenging.
UBS said productivity initiatives, including RELEX and Lean, along with continued reductions in net leverage, should help the company produce healthy adjusted EPS growth. The brokerage models fiscal 2027 adjusted EPS of $3.26, up about 23%.
UBS maintained a neutral rating and raised its price target to $50 from $47.
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