Stock research on global mid-cap companies

Evaluate Research

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

Fresh Del Monte Produce / Equity Bottom-Up

<p>Fresh Del Monte [FDP_US] reported another set of strong results for&nbsp;the third quarter [ended September], where the reported earnings&nbsp;were 20% higher than our estimates. The company recorded EPS of&nbsp;$1.17 during 3Q 2016 as compared to $0.56 during 3Q 2015&nbsp;registering a growth of 108% YoY. This growth came on the back of&nbsp;an increase in sales of avocado, fresh-cut and pineapple product lines&nbsp;of the company as well as an improvement in the global banana&nbsp;selling prices and lower commodity costs.</p>
<p>Following a robust set of results, we are maintaining our price target&nbsp;at $66.60 which represents +2% upside from the current levels. Our&nbsp;price target is based on the average of DCF and P/E methodologies.&nbsp;Our DCF based price is $62.90 which assumes 7.2% WACC and 2.5%&nbsp;terminal growth rate. We apply an 18.4x P/E on our FY2017 EPS&nbsp;estimate of $3.82 which comes to $70.30 per share. See DCF details&nbsp;further in the report. At present the shares of FDP are trading at&nbsp;17.1x on FY2017 EPS estimate which is lower than its 5– year&nbsp;average P/E of 18.1x. Given the limited upside potential we remain&nbsp;neutral on the stock. Our target P/E multiple of 18.4x is at a discount&nbsp;to the sector average given the volatile nature of FDP’s earnings.</p>

Fresh Del Monte [FDP_US] reported another set of strong results for&nbsp;the third quarter [ended September], where the reported earnings&nbsp;were 20% higher than our estimates. The company recorded EPS of&nbsp;$1.17 during 3Q 2016 as compared to $0.56 during 3Q 2015&nbsp;registering a growth of 108% YoY. This growth came on the back of&nbsp;an increase in sales of avocado, fresh-cut and pineapple product lines&nbsp;of the company as well as an improvement in the global banana&nbsp;selling prices and lower commodity costs.
Following a robust set of results, we are maintaining our price target&nbsp;at $66.60 which represents +2% upside from the current levels. Our&nbsp;price target is based on the average of DCF and P/E methodologies.&nbsp;Our DCF based price is $62.90 which assumes 7.2% WACC and 2.5%&nbsp;terminal growth rate. We apply an 18.4x P/E on our FY2017 EPS&nbsp;estimate of $3.82 which comes to $70.30 per share. See DCF details&nbsp;further in the report. At present the shares of FDP are trading at&nbsp;17.1x on FY2017 EPS estimate which is lower than its 5– year&nbsp;average P/E of 18.1x. Given the limited upside potential we remain&nbsp;neutral on the stock. Our target P/E multiple of 18.4x is at a discount&nbsp;to the sector average given the volatile nature of FDP’s earnings.

Fresh Del Monte Produce: 3QFY2016 Earnings Update