UPDATE: Jefferies Reiterates Hold Rating, Raises PT on Diamond Foods Following Settlement Announcement

In a report published Thursday, Jefferies analyst Thilo Wrede reiterated a Hold rating on

, and raised the price target from $19.00 to $21.00. In the report, Jefferies noted, “DMND announced terms of a proposed settlement with shareholders today that would require the co to pay $11 million and issue 4.45 million shares. We view this as a positive development because it removes the dilution uncertainty. However, investors still need to learn about the state of the walnut grower base and revenues continue to decline even though the rate of decline seems to have bottomed. Until we get more clarity we remain cautious.” Diamond Foods closed on Wednesday at $19.13.