Diamond Foods (DMND) Shares Rallying Sharply as KeyBanc Defends Amid Probe
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Price: $37.56 --0%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 14 | New: 26
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 14 | New: 26
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Traders are snapping up shares of Diamond Foods (Nasdaq: DMND) hand over fist Friday morning ahead of the Monday deadline for the filing of its 10Q. More than an hour into the session, Diamond shares are up 32 percent to nearly $35.
The Street may be responding to a reassuring note from KeyBanc's Akshay Jagdale earlier. Although the analyst's price target on the stock was lowered from $95 to $76, he reiterated a Buy rating and said he believes the Pringles deal will go through (although current valuation suggests the market thinks differently).
The analyst sees a "good chance" Diamond will miss the December 12th deadline for its 10Q.
Related to the recent probe which has brought controversy to the company, Jagdale cites Bob Williens, a third-party consultant hired by KeyBanc in October, as saying, "I believe the ongoing investigation will reveal that DMND has properly accounted for the various payments it makes to its growers. As far as timing is concerned, I'd like to think, given the controlling nature of the contract and the unambiguity of its terms, that the investigation can be wrapped up rather quickly."
Jagdale notes his "sum-of-the-parts valuation, in a break-up scenario, is at least $44/share."
To track all the market-moving analyst action on shares of Diamond Foods, visit our Analyst Ratings page.
The Street may be responding to a reassuring note from KeyBanc's Akshay Jagdale earlier. Although the analyst's price target on the stock was lowered from $95 to $76, he reiterated a Buy rating and said he believes the Pringles deal will go through (although current valuation suggests the market thinks differently).
The analyst sees a "good chance" Diamond will miss the December 12th deadline for its 10Q.
Related to the recent probe which has brought controversy to the company, Jagdale cites Bob Williens, a third-party consultant hired by KeyBanc in October, as saying, "I believe the ongoing investigation will reveal that DMND has properly accounted for the various payments it makes to its growers. As far as timing is concerned, I'd like to think, given the controlling nature of the contract and the unambiguity of its terms, that the investigation can be wrapped up rather quickly."
Jagdale notes his "sum-of-the-parts valuation, in a break-up scenario, is at least $44/share."
To track all the market-moving analyst action on shares of Diamond Foods, visit our Analyst Ratings page.
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