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UPDATE: Jefferies Upgrades Diamond Foods to Hold; Revenue Loss Did Not Compress Margins

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Jefferies upgraded Diamond Foods (NASDAQ: DMND) from Underperform to Hold and raised the price target from $11.00 to $15.00.

Jefferies analyst Thilo Wrede noted, "We are raising DMND to Hold from Underperform with a new $15 PT as our bear thesis of combined revenue and margin pressure did not play out. Even though DMND continues to face revenue losses, the company apparently cut enough unprofitable SKUs and reduced costs to enhance margins, an event that we had underestimated. Together with the potential for eventually covering the remaining 29% of short interest, we see only limited downside."

Diamond Foods closed at $15.89 on Tuesday.

Latest Ratings for DMND

Feb 2015BMO CapitalUpgradesMarket PerformOutperform
Jun 2014Credit SuisseInitiates Coverage onOutperform
Jun 2014BarclaysUpgradesEqualweightOverweight

View More Analyst Ratings for DMND
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Upgrades Analyst Ratings


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