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PhillipCapital initiates 'buy' on Del Monte as turnaround underway

Lim Hui Jie
Lim Hui Jie10/27/2021 05:31 PM GMT+08  • 3 min read
PhillipCapital initiates 'buy' on Del Monte as turnaround underway
PhillipCapital, citing an earnings turnaround, has initiated coverage on Del Monte with a "buy" call and target price of 60 cents
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PhillipCapital’s Vivian Ye, citing an earnings turnaround, has initiated coverage on Del Monte, famous for its range of pineapples and bananas, with a “buy” call and a target price of 60 cents. In a 27 Oct report, Ye notes that its US subsidiary Del Monte Foods has turned profitable in FY2021, recording a full year profit of US$15.8 million after suffering losses since the acquisition in 2014.


See: Del Monte Pacific sounds 2Q loss warning

New products launched in the past three years accounted for 6% of FY2021 revenue, and Ye expects the continuing introduction of new products and margin expansion to contribute to gross profit growth at a CAGR of 13% over the next two years.

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