Jefferies Initiates Coverage On Diamond Foods With Buy Rating

Jefferies & Co. is initiating coverage on shares of Diamond Foods DMND with a Buy rating and a $80 price target. In a note to clients, Jefferies writes, "We initiate coverage of Diamond Foods with a Buy rating and $80 PT for 15% upside. DMND is on the brink of two major events in its history. A 50% capacity increase for its Kettle Brand potato chips in early CY12 will set DMND up for market share growth in the Eastern U.S. At the same time, Diamond will close its pending acquisition of Pringles at the end of CY11, which will transform the company and create int'l growth opportunities." Shares of DMND gained 81 cents yesterday to close at $70.79, a gain of 1.16%.