Truist Securities analysts maintained a Hold rating on Flowers Foods (NYSE:FLO) and reiterated a price target of $23 following the company’s reported Q2 results, with EPS of $0.36, better than the analyst estimate of $0.33, and revenue of $1.23 billion versus the Street estimate of $1.24 billion.

The analysts noted that the company's recent quarterly performance aligned with expectations, though sales came in slightly lower due to unpredictable exits from certain food service contracts. The core Direct-Store-Delivery (DSD) business trends remained consistent with the previous quarter.

With the key summer season behind them, Flowers Foods appears more confident in meeting its 2024 full-year outlook. While the business is performing steadily, like a typical consumer staple company with slow growth, stable margins, and consistent cash flow, the analysts believe the company may need to pursue a significant M&A deal to attract more investor attention.