Barron's Says Dole (DOLE) Undervalued

Shares of Dole (NYSE: DOLE) may open higher on Monday after the company received positive coverage in a weekend article in Barron's. Barron's said it thinks Dole's shares could be worth more than double their current price and expect a 25 percent rally in the next 12 months.

"We think that's an opportunity," said Barron's. "Dole trades at a deal-adjusted enterprise value of 6.7 times 2013 estimated earnings before interest, taxes, depreciation, and amortization - in line with historical multiples for fruit companies. But after you factor in the company's 113,000 acres of farmland, including 25,000 acres on Oahu - of which 16,500 are listed for sale, the valuation falls to just four times Ebitda."

At this valuation the stock is seen as attractive, especially in light of recent efforts to reduce debt, including the sale of its Asian food business.

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