Deutsche Bank Starts Lance, Inc. (LNCE) at Hold;
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Price: $26.41 +0.72%
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade LNCE Now!
Deutsche Bank initiates coverage on Lance, Inc. (NASDAQ: LNCE) with a Hold.
Deutsche analyst said, "We initiate with a Hold recommendation, primarily due to valuation. Our analysis suggests the company is fairly valued vs. a comp group of peers with similarly high near-term EPS growth. Valuation is also at an appropriate
premium to the packaged food group given a focused snack portfolio and US-weighted exposure."
The firm expects the broad snack category (that LNCE) plays in to grow at avg of 5% CAGR (vs. 2-3% for typical packaged food)...Near-term profit growth for the company will be significant as merger and DSD transition benefits take effect. In 2012, we expect sales down 1%, but EBIT up 30%, resulting in EPS of $0.94. Longer term, we expect the company to reach 10% EBIT margins (from 5.2% in 2011) between 2015 and 2016."
For an analyst ratings summary and ratings history on Lance, Inc. click here. For more ratings news on Lance, Inc. click here.
Shares of Lance, Inc. closed at $23.11 yesterday, with a 52 week range of $18.78-$27.09.
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Deutsche analyst said, "We initiate with a Hold recommendation, primarily due to valuation. Our analysis suggests the company is fairly valued vs. a comp group of peers with similarly high near-term EPS growth. Valuation is also at an appropriate
premium to the packaged food group given a focused snack portfolio and US-weighted exposure."
The firm expects the broad snack category (that LNCE) plays in to grow at avg of 5% CAGR (vs. 2-3% for typical packaged food)...Near-term profit growth for the company will be significant as merger and DSD transition benefits take effect. In 2012, we expect sales down 1%, but EBIT up 30%, resulting in EPS of $0.94. Longer term, we expect the company to reach 10% EBIT margins (from 5.2% in 2011) between 2015 and 2016."
For an analyst ratings summary and ratings history on Lance, Inc. click here. For more ratings news on Lance, Inc. click here.
Shares of Lance, Inc. closed at $23.11 yesterday, with a 52 week range of $18.78-$27.09.
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