UPDATE: Wedbush Initiates Coverage on Calavo Growers

According to a research report published earlier today, Wedbush has initiated Calavo Growers

with an Outperform rating and $34 PT. Wedbush said in the report, “Given CVGW's fast-growing fresh foods business, market-leading position in the growing avocado industry, margin expansion opportunities and leading distribution network, we believe shares of CVGW should trade at an approximate 20% premium to the peer group. Thus, using a 2012E P/E ratio of 20x, we generate our 12-month PT of $34.” Calavo Growers closed yesterday at $25.61.