Auriga Maintains a 'Hold' on Fresh Del Monte (FDP); Quarter Review
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Price: $27.24 +1.49%
Rating Summary:
0 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
0 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade FDP Now!
Auriga maintains a 'Hold' on Fresh Del Monte (NYSE: FDP) price target raised from $24 to $27.
Analyst, Gary Albanese, said, "FDP reported earnings that were well above our expectations as the company focused on profitable business in the quarter, choosing to turn down opportunities, such as in Northern Europe, which would have adversely impacted earnings. While such actions pushed revenue lower than we expected, we view the profit discipline management demonstrated as more important. In the markets that Fresh Del Monte operates, demand /supply imbalances are common and it is important, in our view, for management to be able to walk away from unprofitable business. In addition to the higher than expected Q1 results, we are raising our EPS estimates for the year, especially in Q2 when the company may continue to benefit from its cost conscious and profit focused activities. We expect the company to generate gross margins closer to its Q1 performance. We are increasing our estimate for FY12 to $2.37 from $1.88...However, we are reiterating our Hold recommendation as Fresh Del Monte's shares rose about 7% following the earnings release."
For an analyst ratings summary and ratings history on Fresh Del Monte click here. For more ratings news on Fresh Del Monte click here.
Shares of Fresh Del Monte closed at $24.79 yesterday, with a 52 week range of $21.26-$28.11.
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Analyst, Gary Albanese, said, "FDP reported earnings that were well above our expectations as the company focused on profitable business in the quarter, choosing to turn down opportunities, such as in Northern Europe, which would have adversely impacted earnings. While such actions pushed revenue lower than we expected, we view the profit discipline management demonstrated as more important. In the markets that Fresh Del Monte operates, demand /supply imbalances are common and it is important, in our view, for management to be able to walk away from unprofitable business. In addition to the higher than expected Q1 results, we are raising our EPS estimates for the year, especially in Q2 when the company may continue to benefit from its cost conscious and profit focused activities. We expect the company to generate gross margins closer to its Q1 performance. We are increasing our estimate for FY12 to $2.37 from $1.88...However, we are reiterating our Hold recommendation as Fresh Del Monte's shares rose about 7% following the earnings release."
For an analyst ratings summary and ratings history on Fresh Del Monte click here. For more ratings news on Fresh Del Monte click here.
Shares of Fresh Del Monte closed at $24.79 yesterday, with a 52 week range of $21.26-$28.11.
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