Strength in DLM’s Earnings May Continue in F2Q10

Analysts at Deutsche Bank maintain their "hold" rating on Del Monte Foods (NYSE: DLM), while raising their estimates for the company. The target price for DLM is set to $11.

Del Monte is scheduled to post its F2Q10 results on December 3. Deutsche Bank expects DLM to post its EPS for the quarter at $0.23, ahead of the consensus. Analysts at Deutsche Bank said that strength in DLM’s earnings may continue from the previous quarter, despite the company aiming to raise its A&P spending to more than 40%.

Analysts believe that Del Monte is well positioned for consumers seeking value for money products. Deutsche Bank, however, maintained its cautious approach towards DLM due to long-term concern over scale, especially in Pet Food.