Jefferies Downgrades Diamond Foods (DMND) to Hold

Jefferies downgraded Diamond Foods (NASDAQ: DMND) from Buy to Hold with a price target of $94 (down from $80).

The firm comments, "We are downgrading DMND to Hold and are reducing our margin assumptions by 50bps as more of the Pringles accretion than we previously thought appears to get reinvested. For the long term, we continue to believe in the strong fundamentals and growth potential of the company but are of the view that the stock is fairly valued at a 26x NTM P/E. At this valuation, we only see a small probability that DMND could become a takeover target."

For more ratings news on Diamond Foods click here and for the rating history of Diamond Foods click here.

Shares of Diamond Foods closed at $91.91 yesterday.

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