Streetinsider - Wells Fargo on Dole Food Co.

Streetinsider - Wells Fargo on Dole Food Co.

Wells Fargo initiates coverage on Dole Food Company (Nasdaq: DOLE) with a Market Perform rating. Valuation range $12-14

Wells analyst says, "We have a favorable view of Dole's global brand strength which is supported by an
extensive distribution network and consumer trends toward health and convenience. While we are encouraged by Dole's value-added focus, we think the global economic environment may dampen near-term growth opportunities as consumers continue to pullback on spending.Our CY2010 adjusted EBITDA target is $439.5M...We think Dole is well-positioned with a strong global brand and extensive distribution network supported by consistent underlying demand and favorable consumer trends toward health and convenience. Our Market Perform rating reflects concern that the global macro environment may limit near-term catalysts, particularly for value-added offerings that may be more cyclical...We think Dole's global platform is positioned to capitalize on potential increases in fresh fruit consumption, especially bananas, as world economies improve and per capita income rises. Dole views Eastern Europe, Russia, the Middle East and China as attractive, high-growth markets."

To see all the upgrades/downgrades on shares of DOLE, visit our Analyst Ratings page.