UPDATE: KeyBanc Upgrades Bob Evans Farms to Buy on Value-Creating Initiatives

KeyBanc raised its rating on Bob Evans Farms

from Hold to Buy and established a $45 price target. KeyBanc noted, "We believe the Company is on the cusp of implementing several value-creating initiatives that should result in better-than-expected earnings and cash flows, and cause shares to be re-rated during the next 12 months. These initiatives include: 1) the sale of Mimi's Cafe; 2) the realization of growth in the higher-margin food packaging business; and 3) the ability to build SRS from the Bob Evans remodel program." Bob Evans Farms closed at $37.19 on Tuesday.