KeyBanc Starts Lance, Inc. (LNCE) at Sector Weight

KeyBanc initiated coverage on Lance, Inc. (NASDAQ: LNCE) with a Sector Weight rating. Analyst Brett Andress said he is waiting until signs of better earnings/communication visibility emerge.

"Relative to our other SW rated names, we are more inclined to favor LNCE owing to: 1) the upside we see to current out-year estimates via incremental cost (~$0.10) and revenue (~$0.05) synergy potential from DMND; 2) the fact that LNCE operates in one of the most favorable food categories with meaningful untapped share opportunities; and 3) the presence of an underutilized DSD network that should provide a source of LT revenue growth as routes and territories mature," said Andress.

"That said, some uncertainty surrounding DMND's nut business after a five-year bull market in nut prices and a historical lack of effective expectation management keep us at a SW until signs of better earnings/communication visibility emerge," added the analyst.

For an analyst ratings summary and ratings history on Lance, Inc. click here. For more ratings news on Lance, Inc. click here.

Shares of Lance, Inc. closed at $30.61 yesterday.

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