American Food Co, Inc. (AFHD) has been rated “Speculative Buy” with a target price of $.40 by Beacon Equity Research. The rapidly growing firm is targeting the $3.2 billion beef snack market.
American Food Co., Inc manufactures and markets beef jerky and other snack foods under the “Reinhold & Timko Beef Snacks” brand name. The Company’s jerky product line includes items made from premium cuts of beef, chicken and turkey. American Food supplies products to more than 300 distributors across the US.”
The Company operates in a stable and growing Industry,as the meat snacks industry is poised for good growth over the next five years. Industry sales grew from $ 1.3 billion in 1999 to $ 2.4 billion in 2003 and reached $ 3.2 billion in 2006, a 13.7% growth rate.
Despite this growth, market penetration is low; only 39% of US household buy meat snacks. This suggests favorable opportunities for additional sales, which are forecast to rise to $ 4.2 billion in 2009, 31% higher than 2006 sales. Consumer interest in a low carbohydrates diet is supporting industry growth as is increased interest in consuming beef products.
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