UPDATE: Piper Jaffray Lowers PT on Le Gaga Holdings to $4

Piper Jaffray published a research report on Le Gaga Holdings GAGA and lowered the price target from $4.50 to $4 after the company reported less than desirable earnings. In the report, Piper Jaffray wrote, "GAGA reported disappointing results this morning with revenue growth up just 2% despite a 21% rise in ASP's from favorable mix shift. Revenue per mu, a key operating metric for the company, decelerated sequentially to just 1% year-over-year growth from 21% last quarter. Poor weather conditions in the region delayed greenhouse construction for the second quarter in a row to 25% year-over-year growth compared to 59% growth for FY12. FY13 guidance calls for a meaningful acceleration in revenue growth from the current trend, weighted to the winter months given the solanaceous harvesting cycle, to 15.5%-21.3% growth year-over-year from just 1.7% in Q1. We also note this years revenue continues a slower topline growth from the prior two years." Piper Jaffray maintained its Neutral rating on Le Gaga, which traded down four percent Monday from Friday's $4.00 closing price.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetAnalyst RatingsPiper Jaffray
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!