Seeking Alpha

Walmart pain for Hostess Brands

|About: Hostess Brands, Inc. (TWNK)|By:, SA News Editor

RBC Capital downgrades Hostess Brands (NASDAQ:TWNK) to Sector Perform from Outperform after factoring in the food company's weak Q2 earnings report.

Analyst David Palmer says it was Walmart that Hostess was referring to when it described a loss of promotional support during the quarter from a major retail customer. Plamer also points to higher freight, labor and packaging costs for Hostess moving ahead.

The new RBC price target on Hostess is $14.

Shares of Hostess Brands are down 16.21% in early trading.

Subscribe for full text news in your inbox