UPDATE: BB&T Color On CVGW Downgrade

BB&T, which downgraded shares of Calavo Growers Inc. CVGW, is providing some color on the stock. “We have downgraded the shares of CVGW to Hold (2) from Buy (1) as the shares are just 1% shy of our price target and we do not believe current fundamentals warrant a large enough increase in the price target to justify a Buy (1) rating,” BB&T writes. “We are believers in the Calavo growth story as we expect avocado consumption to continue to ramp higher in the U.S. and we believe the company is very well positioned to benefit from that trend. Further, its foray into prepared foods should continue to propel strong sales and earnings growth over the longer-term due to the on-trend markets the company has targeted and the relatively high-margin profile of the products.” Calavo Growers currently trades at $22.26.