Gabelli Unitiates Coverage On Snyder's-Lance With Buy Rating

According to Gabelli, Snyder's-Lance LNCE coverage is initiated with a Buy rating. Gabelli said that the new entity will generate a combined $1.6 bn of revenue and approximately $170 mm of EBITDA in 2011, with the full benefits of the merger realized in 2012 and beyond. “ While integration risks and conversion issues remain, LNCE expects to improve revenue growth by incentivizing independent owners to grow their business, expand operating margins by reducing employee expenses and assets costs, and realize $45-50 mm of net proceeds from the sale of DSD routes to independent operators.” Snyder's-Lance closed on Friday at $20.82.