UPDATE: Jefferies & Company Reiterates Underperform Rating, Raises PT on Diamond Foods

In a report published Monday, Jefferies & Company reiterated its Underperform rating on Diamond Foods DMND, and slightly raised its price target from $10.00 to $11.00. Jefferies noted, “DMND filed its FY12 10-K at the deadline and the company's financials were slightly better than we expected. However, latest scanner data shows that the operational challenges are just beginning. Gross margins were better than we had assumed – presumably due to the summer mix shift to snacks –but we still see pressure for at least 1Q13. We maintain our Underperform rating at a new $11 (+$1) price target.” Diamond Foods closed on Friday at $14.81.