KeyBanc Reiterates a 'Buy' on Diamond Foods (DMND); Raising PT on Valuation

KeyBanc reiterates a 'Buy' on Diamond Foods (NASDAQ: DMND) price target raised from $80 to $85.

KeyBanc analyst says, "We are reiterating our rating and increasing our price target PT to $85 on DMND following investor meetings with the management team a few weeks ago and prior to the Company's 4Q11 earnings release this Thursday. After a deep dive into the Company's valuation and comparing the Company's results to 18 other food companies as well as seven other consumer growth companies, we believe more strongly that the stock should trade at a higher multiple. In addition, we continue to believe that the Company can deliver ~20% EPS growth over at least the next three years given our favorable view of the Pringles transaction and our expectations for continued double-digit snack sales growth given ongoing investments in advertising, new products and additional Kettle capacity."

For more ratings news on Diamond Foods click here and for the rating history of Diamond Foods click here.

Shares of Diamond Foods closed at $74.58 yesterday.

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