UPDATE: DA Davidson Cuts PT to $20 on Diamond Foods Following Q1 Results

DA Davidson reiterated its Buy rating on Diamond Foods DMND but reduced its price target from $30 to $20. DA Davidson said, "We are reducing our price target to $20 previously $30 based on the reduction in confidence we perceive as a result of the missed opportunity of the Q1 call. We think Diamond has three important tasks for the next year: 1) stabilize the business; 2) rebuild confidence with the walnut growers; and 3) rebuild confidence with the investment community. Management does appear to be stabilizing the business and did reiterate the description of FY13 being a transition (up versus FY12) year. We don't know if they have rebuilt confidence with growers, but we do know that the lack of guidance and the contradictory accounting treatments in Adjusted EPS leave us wanting more and better." Diamond Foods closed at $13.96 on Friday.