UPDATE: Jefferies & Company Downgrades Diamond Foods to Underperform, Lowers PT

In a report published Monday, Jefferies & Company downgraded its rating on Diamond Foods DMND from Hold to Underperform, and lowered its price target from $27.00 to $10.00. Jefferies noted, “We are downgrading DMND to Underperform from Hold, following the restatement of earnings. In our view, the lack of earnings visibility, potential for FY13 EBITDA decline and neg. EPS expectations are not sufficiently reflected in the stock price. While mgmt. seems to have a viable strategy we believe that it will take some time to show positive results and until then we prefer not to own the stock. Our new PT is $10 (from $27).” Diamond Foods closed on Friday at $15.13.