Auriga Reiterates a 'Buy' on Dole (DOLE); Adjusting Estimates on Expected Lower Pricing in Q4 & Q1
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Price: $13.30 --0%
Rating Summary:
4 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
4 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Auriga reiterates a 'Buy' on Dole (NYSE: DOLE) price target of $14.00.
Auriga analyst says, "Although Dole Food hasn't released a formal 4Q earnings release date, we expect it to occur towards the middle of March, which is when it reported last year. We typically wait until the release date is announced before preparing our earnings preview but the recent 4Q11 revenue weakness in peers Chiquita and Fresh Del Monte led up to alter our estimates for the quarter and for 2012. Much of the recent weakness was due to lower produce prices in the latter half of 2011, especially in Europe, because of surplus fruit supply. The 2H11 market weakness continued into the initial months of 2012, but has recently been improving. Nevertheless, we are reducing our 4Q estimates to reflect $40 million in lower sales (to $1.533 billion) and our loss per share goes to ($0.11) from ($0.07). We've also reduced our 1Q12 estimates as well...While we are lowering our estimates, we reiterate our Buy recommendation and $14 price target, which is based upon a 9.5x multiple of our FY12 EPS estimate. We continue to believe Dole Food shares remain cheap and that the company remains well positioned if market conditions improve, as we expect, during the year."
For an analyst ratings summary and ratings history on Dole click here. For more ratings news on Dole click here.
Shares of Dole closed at $9.42 yesterday.
Auriga analyst says, "Although Dole Food hasn't released a formal 4Q earnings release date, we expect it to occur towards the middle of March, which is when it reported last year. We typically wait until the release date is announced before preparing our earnings preview but the recent 4Q11 revenue weakness in peers Chiquita and Fresh Del Monte led up to alter our estimates for the quarter and for 2012. Much of the recent weakness was due to lower produce prices in the latter half of 2011, especially in Europe, because of surplus fruit supply. The 2H11 market weakness continued into the initial months of 2012, but has recently been improving. Nevertheless, we are reducing our 4Q estimates to reflect $40 million in lower sales (to $1.533 billion) and our loss per share goes to ($0.11) from ($0.07). We've also reduced our 1Q12 estimates as well...While we are lowering our estimates, we reiterate our Buy recommendation and $14 price target, which is based upon a 9.5x multiple of our FY12 EPS estimate. We continue to believe Dole Food shares remain cheap and that the company remains well positioned if market conditions improve, as we expect, during the year."
For an analyst ratings summary and ratings history on Dole click here. For more ratings news on Dole click here.
Shares of Dole closed at $9.42 yesterday.
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