Auriga Reiterates a 'Hold' on Fresh Del Monte (FDP); Lowers PT & Estimates
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Price: $29.22 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Auriga reiterates a 'Hold' on Fresh Del Monte (NYSE: FDP) price target lowered from $27 to $24.
Auriga analyst says, "FDP reported 4Q11 results that were below expectations, as the company was adversely affected by a weak European market and higher fuel prices. FDP experienced lower sales in several key products, notably bananas and prepared foods. Although the company noted the pricing environment in Europe is improving, surplus fruit continued to impact pricing as the year began. In addition, sales remain impacted by reductions in several categories, including deciduous fruit. We also expect the company to be impacted by higher fuel prices as minimal hedges have been instituted. With the weaker results, we are reducing our EPS estimates for FY12 and FY13 to $1.88 and $2.19 respectively."
"While we believe that the company has the potential to rebound later this year, recent product line rationalizations may have reduced revenues quicker that the company can replace it with new value-added products. In addition, weaker international markets continue to represent head winds, and may face cost pressures for higher shipping and fuel expenses."
For an analyst ratings summary and ratings history on Fresh Del Monte click here. For more ratings news on Fresh Del Monte click here.
Shares of Fresh Del Monte closed at $22.97 yesterday.
Auriga analyst says, "FDP reported 4Q11 results that were below expectations, as the company was adversely affected by a weak European market and higher fuel prices. FDP experienced lower sales in several key products, notably bananas and prepared foods. Although the company noted the pricing environment in Europe is improving, surplus fruit continued to impact pricing as the year began. In addition, sales remain impacted by reductions in several categories, including deciduous fruit. We also expect the company to be impacted by higher fuel prices as minimal hedges have been instituted. With the weaker results, we are reducing our EPS estimates for FY12 and FY13 to $1.88 and $2.19 respectively."
"While we believe that the company has the potential to rebound later this year, recent product line rationalizations may have reduced revenues quicker that the company can replace it with new value-added products. In addition, weaker international markets continue to represent head winds, and may face cost pressures for higher shipping and fuel expenses."
For an analyst ratings summary and ratings history on Fresh Del Monte click here. For more ratings news on Fresh Del Monte click here.
Shares of Fresh Del Monte closed at $22.97 yesterday.
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