UPDATE: Global Hunter Initiates Tesco at Accumulate

Global Hunter is out with its report today on Tesco TESO, initiating TESO at Accumulate. In its report, Global Hunter writes, "A debt-free balance sheet with a revolver capacity of more than $120MM and cash of $41MM offers downside protection with minimal likelihood of a liquidity event, in our opinion. For the valuation of TESO, we use multiples in line with small-cap, manufacturing companies. Applying 7.0x EV/EBITDA and 18.0x P/E multiples to our 2012 expectations, we arrive at a $19 price target. As such, we believe TESO to be undervalued and rate shares Accumulate." Shares of TESO closed Wednesday at $14.52.