FLO - Flowers Foods: Impressive Growth But High Price

2023-03-30 02:53:31 ET

Summary

• FLO's business has performed well in 2022, despite the challenging macroeconomic environment. This performance has been also reflected in the share price.
• Using multistage dividend discount models and scenario analysis, we have determined the fair value of the stock to be below the current market price.
• However, a set of traditional price multiples indicate that FLO's stock based on the price multiples is trading more or less in line with its peers and competitors.
• Because of the firm's resilience, impressive growth, and relative independence of the consumer confidence levels, we rate FLO stock as "hold".

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