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Calavo Growers Price Target Raised to $75 from $70 at DA Davidson

Posted by on December 21, 2016 6:55 AM
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Categories: Stocks To Watch

December 21, 2016: DA Davidson raised Calavo Growers price target to $75 from $70, and they reiterated their Buy rating. DA Davidson FY17 EPS is increased to $2.60 from $2.35 and FY18 EPS estimate is set at $2.85.

December 20, 2016: Calavo Growers beats on earnings coming in at Q4 EPS of $0.53 versus the $0.47 estimate. Revenue also beat coming in at $247.7 million versus the $232 million estimate.

December 19, 2016: Effective January 6th, 2017, Kenneth J. Catchot will resign as President and Chief Operating Officer of Calavo Growers, Inc. (Calavo) and assume a senior management position with FreshRealm, LLC (FreshRealm), in which Calavo holds a 46% ownership interest. FreshRealm is a California-based company that provides an online marketplace and home delivery system offering consumers an assortment of premium meal choices.

Following Mr. Catchots resignation, Lecil E. Cole will serve as Calavos President in addition to continuing to serve as Calavos Chief Executive Officer and Chairman of the Board of Directors.

December 15, 2016: Davidson raised Calavo Growers to a Buy rating from Neutral, and sets a price target of $70. Davidson said they upgraded Calavo Growers on valuation now that the Mexican strike has been resolved.

December 5, 2016: Calavo Growers has formed a beautiful candle over candle reversal as Vertical Group initiates coverage of Calavo Growers with a Buy rating and a price target of $64.

November 11, 2016: Stephens raised Calavo Growers to an Overweight rating from Equal Weight.

November 3, 2016: Calavo Growers acquires 128,000 square feet Riverside, Calif. production facility for $19.4 million. The newly acquired production facility will further enhance the national footprint for the company’s Renaissance Food Group, LLC (RFG) business segment and position the segment to serve its growing customer base across the southwestern United States.

The acquired facility, which totals approximately 128,000 square feet situated on about 11 acres, was previously owned and operated by affiliates of the former Fresh & Easy Neighborhood Markets.

The company described the new facility as nearly turnkey, which will allow RFG to quickly expand capacity and meet growing demand among current and new customers for its fresh, value-added packaged fruit and vegetables, ready-to-eat salads and prepared foods offerings. The facility’s state-of-the-art design allows for an efficient start up, optimal food-safety measures, and quality production flow. Its physical location, in Southern Californias burgeoning Inland Empire region, is highly sought after for its prime interstate and rail access.

The new Riverside facility follows the recent addition of a 209,000 square foot production and distribution center near Jacksonville, Fla. and the new renovation and expansion of the 89,000 square foot manufacturing facility in Houston, Texas.

Total transaction consideration approximated $19.4 million, according to the company. Calavo reported that it purchased the facility through a variable interest entity created to effect a potential like-kind exchange under Section 1031 of the Internal Revenue Code.

Calavo Growers, Inc. is a global avocado-industry leader. The company also procures and markets diversified fresh produce items, ranging from tomatoes to tropical produce. Calavo’s two principal business units – fresh avocados and processed products – supply wholesale, retail, foodservice distributors and operators and industrial. The company’s processed products division manufactures nearly 100 brand name and proprietary flavors of frozen and fresh-refrigerated guacamoles using ultra-high-pressure technology from a new, state-of-the-art 90,000-plus square foot production facility in Uruapan, Michoacán, Mexico. In supermarkets, Calavo’s great-tasting fresh-refrigerated guacamole is available to consumers nationwide. And, consumers of Calavo fresh avocados now span the globe, from Japan to Europe and beyond.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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