J.P. Morgan Reiterates Overweight On TreeHouse Foods (THS)

J.P. Morgan Chase & Co. is reiterating its Overweight rating on TreeHouse Foods Inc. THC, along with it s $57 price target after the company reported earnings on Friday. In a research report sent to cleints, J.P. Morgan writes, "We have little doubt that THS can and will raise prices successfully next year. Indeed, we are confident that the entire food group will do so (if coffee prices can increase by ~10% and meat prices by ~20% with limited elasticity, which they have, then we think cereal, soup, and other basic food items can rise by low- to mid-single-digit rates). And THS successfully took roughly four price increases in 2008, when inflation was more severe and volatile than today. But there often is a timing issue whereby prices lag cost inflation for a few months, and we believe TreeHouse could find itself facing such a situation in 4Q10." Shares of THS gained $1.36 on Friday to close at $48.41.