Smart Balance up 9% on Analyst Upgrade
Smart Balance (NASDAQ: SMBL) is trading higher on the session following a research report by Canaccord Genuity. In the report, Canaccord upgrades Smart Balance from Hold to Buy and raises the price target from $6.50 to $8.00.
Canaccord Genuity notes, "We continue to believe that Smart Balance has a favorable financial model and platform for growth in the healthier foods arena that is enhanced by the Udi's acquisition. We are upgrading SMBL shares to BUY from Hold following the announced agreement to acquire Udi's Healthy Foods, the leading gluten-free brand in the US. Expected to be accretive to F2013E cash EPS (ex. intangible amortization), and we estimate $0.03 of cash EPS accretion. Guidance to be updated in the Q2 call post-financial close."
Smart Balance is currently trading at $6.60, a gain of $0.53 or 8.73%.
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