Jefferies Cuts Price Target On Diamond Foods (DMND), But Sees Upside Even Under the Worst Case

Jefferies slashed its price target on Diamond Foods (NASDAQ: DMND) from $94 to $46, but is maintaining their Buy rating. The firm said even the worst case scenario regarding the Pringles acquisition provides upside in the shares.

The firm comments, "Even in our worst case scenario DCF, DMND is worth $39. While we do not know if DMND will have to restate earnings – we discuss potential motives to manipulate earnings inside – we continue to like the base snack business and believe that it is currently undervalued. Nevertheless, there is still downward momentum, creating near term risk."

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 $35.11 yesterday.

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