Strong Momentum At TUP To Carry Into 2010
Analysts at Jefferies & Co maintain their "buy" rating on Tupperware (NYSE: TUP), while raising their estimates for the company. The target price for TUP has been raised from $55 to $60.
According to Jefferies & Co, Tupperware has reported its Q4 results substantially ahead of the estimates, with local currency sales growth and margin expansion continuing to outperform expectations. “In our view, management's raised 2010E outlook could still prove conservative, as we believe Tupperware exited 2009 with strong underlying momentum across its businesses, which we expect to carry into 2010E,” the analysts say.
“We believe future dividend increases are more likely than major share repurchase,” the analysts add. Jefferies & Co has raised its EPS estimate for FY10 from $3.45 to $3.55.
