BB&T: Lance, Inc Looking to Expand (LNCE)
BB&T Capital Markets wrapped up meetings with Lance, Inc (NASDAQ: LNCE) management recently. Lance is a maker of snack foods.
Lance recently revised its full-year sales guidance downward from $975M-$990M to $930M-$950M. Competition in the salty snacks industry, and weak trends in private label sales and convenience stores all contributed to the decline.
Lance is known for its Cape Cod brand of potato chips.
BB&T Capital Markets said, "We believe Cape Cod’s competitive positioning is vulnerable—in the broader salty snack category, it is a niche brand. We believe it needs to expand into other sub-segments to broaden its appeal and bolster its positioning. It could do this organically, but that would be a very large and lengthy undertaking. We believe it makes more sense to acquire another salty snack brand and we believe management is actively considering available options. Wise is reportedly for sale but we do not believe Lance would actively consider it as its brand is arguably on the wane."
BB&T currently rates LNCE Hold.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.