KeyBanc Cuts Diamond Foods (DMND) to Hold; Moving to Sidelines Until Audit Committee Probe Complete

KeyBanc's Akshay Jagdale downgraded shares of Diamond Foods (NASDAQ: DMND) from Buy to Hold Friday morning.

The firm said Thursday's news of a federal investigation into the financial practices of the company "does not change our opinion on the outcome of the audit committee's investigation... but it does raise the stakes."

According to Jagdale, "given the level of uncertainty, the severity of the allegations and the number of high profile agencies investigating/inquiring into the company's practices, we believe it is prudent to go to the sidelines until the audit committee investigation is complete... and we have more clarity on the outcome of these additional inquiries."

The analyst suspended his $76 price target on shares of Diamond Foods.

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

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