KeyBanc Upgrades Diamond Foods (DMND) to Buy

KeyBanc upgraded Diamond Foods (NASDAQ: DMND) from Hold to Buy with a price target of $32.00. Analyst Akshay S. Jagdale views the recent sell-off as "overdone."

"The recent underperformance in Diamond Foods, Inc.’s (DMND-NASDAQ) stock price, elimination of the “tail-risk” associated with the Company and an emerging inflection in DMND’s Snacks segment growth are the main drivers behind our upgrade of the stock. We acknowledge that the Company’s Nut business is still a long way away from a successful turnaround; however, we think the stock works despite this." said Jagdale.

"Given the turnaround nature of the investment thesis, two distinct operating segments (Nuts and Snacks) and the possibility of a buy-out, we value the Company on a sum-of- the-parts (SOP) basis," he added.

For an analyst ratings summary and ratings history on Diamond Foods click here. For more ratings news on Diamond Foods click here.

Shares of Diamond Foods closed at $27.58 yesterday.

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