DA Davidson Says Diamond Foods (DMND) Would Be a Good Fit for Kellogg (K)

DA Davidson's Tim Ramey issued a note Wednesday considering the implications of this morning's deal between Kellogg (NYSE: K) and P&G (NYSE: PG) for Pringles.

Ramey believes the move pushes Diamond Foods (Nasdaq: DMND) closer to a takeover by Kellogg. "...While we see the benefit in the Pringles deal [for Kellogg], we see more potential for growth in [the healthy snack segment] through Kettle and Emerald," both owned by Diamond Foods. The analyst called Emerald and Kettle "young, strong brands with high consumer awareness and high growth potential."

"Perhaps a blue-chip name like Kellogg will look to Diamond after the accounting issues have been resolved and the company settles back into growing its brands and core businesses," according to the DA Davidson analyst.

Ramey reiterated a Neutral rating and $55 price target on shares of Kellogg. The analyst maintains a Buy rating and $44 target on shares of Diamond Foods.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS