UPDATE: Wells Fargo Initiates TreeHouse Foods at Outperform

Wells Fargo is out with its report today on TreeHouse Foods

, initiating THS at Outperform. In its report, Wells Fargo writes, "We Are Initiating Coverage Of TreeHouse Foods With An Outperform Rating On The Shares And A 12-Month Valuation Range Of $59-61. We believe TreeHouse's current valuation does not fully reflect the company's earnings power as THS capitalizes on the secular growth in private label food sales, gains share within the private label food industry, and continues to make accretive acquisitions. We expect EPS estimates and THS's multiples to increase as the company delivers superior sales and earnings growth relative to the branded packaged food group over the next several years." Shares of THS closed Thursday at $52.20.