UPDATE: KeyBanc Upgrades Snyder's-Lance to Buy on Snack Factory Acquisition

KeyBanc raised its rating on Snyder's-Lance

from Hold to Buy and established a price target of $27 a share. KeyBanc said, "After the market close yesterday (September 5), Snyder's-Lance, Inc. announced an agreement to acquire Snack Factory, LLC and certain affiliates for $340 million in cash (includes roughly $60 million of net present value of future tax benefits). We have a positive view on the deal for the following reasons: 1) the transaction is expected to be accretive immediately (in less than a quarter); 2) accretion from the deal is meaningful in 2013 (guidance points to 9% EPS accretion); 3) the deal enhances LNCE's top-line growth profile; and 4) the deal improves LNCE's margin profile, thereby potentially reducing earnings volatility." Snyder's-Lance closed at $22.50 on Wednesday.