n a research note released Monday, Credit Suisse analyst Robert Moskow initiated coverage on Diamond Foods (NASDAQ: DMND) with an Outperform rating and a target price of $32.
Moskow stated that new management has fixed legal issues and accounting problems that it had incurred in the past. The analyst continued to state that now is a “particularly good time to buy the stock because the market punished it too severely for its 3Q results.”
The analyst said he expects a growth of nearly six percent in full year 2015, in addition to the eight percent growth in 2014. The gains are primarily due to distribution gains on Kettle, share gains by Pop Secret and the launch of Kettle popcorn.
Gross margins for snacks are also 55 percent, which is 10 percent higher than that of snacks. This will also position the company to perform better financially.
Furthermore, the analyst stated that there may be more upgrades to come and thinks that Diamond is an attractive asset for large-cap companies looking to expand in snacks
Piper Jaffray analyst Gene Munster reported that his analysis on marketplace tracking deals confirmthe increasing deal density. Munster remarked that this "moves the company closer to its goal of building the leading local deal marketplace. This is different than Groupon's historical push-email business, moving toward a pull model driven by consumer demand."
Groupon reported 200,000 deals in the March 14 quarter, a 60,000 number increase from the prior quarter. The analyst sees the number reaching 500,000 globally within three to four years. This suggests a 30 percent growth rate on the number of deals per year.
8:27 am LightInTheBox Holding reaffirms Q2 revenue guidance (LITB) :
Co reaffirms guidance for Q2 (Jun), sees Q2 (Jun) revs of +16-19% calc to ~$83.77-85.94 mln vs. $84.80 mln Capital IQ Consensus Estimate.
"We reaffirm our second quarter revenue guidance of 16%-19% growth year-over-year, as well as other general business outlook provided in our last earning call and we expect our Company to continue benefit from a concrete global e-Commerce development plan and strong managerial team."