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.