Flowers Foods (FLO) PT Lowered to $8 at Stephens

Stephens analyst Ben Bienvenu lowered the price target on Flowers Foods (NYSE: FLO) to $8.00 (from $11.00) while maintaining a Equal Weight rating.

The analyst commented: "FLO shares continue to sell off in 2026 as weak industry fundamentals and rising inflationary pressures increase concerns around margin compression. The company's FY26 outlook already called for a y/y earnings decline as category headwinds and rising competition would require incremental investments. Since then, the consumer backdrop has only worsened further, with the Iran conflict sparking fears of another wave of inflation. That said, FLO has seen encouraging momentum from recent innovations like keto buns and an expanded Wonder lineup. However, these growth vectors have thus far not been sufficient to offset declines in the core bread business. Rising commodity costs, including wheat and soybean oil, along with higher transportation and energy expenses, create additional concerns around margin durability and free cash flow generation. Investors are particularly focused on the sustainability of the company's dividend. We are maintaining our EW rating and lower our PT to $8 (from $11 prior)."

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