TUP: Adverse Fx, Accounting Adjustments Mask Strong Underlying EPS Growth

Analysts at Jefferies & Co maintain their "buy" rating on Tupperware TUP. The target price for TUP is set to $65. According to Jefferies & Co, “2Q ongoing EPS of $1.07 v. $0.86, up 24%, beat our Street high $1.03 estimate, consensus $0.97 and mgt's $0.95-$1.00. FX was a $0.03 benefit, less than mgt's original $0.06 expectation….EPS contribution by +$0.10, which is essentially the 2Q ongoing EPS upside versus the middle of management's previous range. Importantly, we calculate that mgt's forecast for organic EPS growth in the 2010E 2H remains largely unchanged in the low-teens, and is apparently versus slightly inflated results as management has chosen not to restate past periods for the inflated Russian results.” “Mgt maintained its F2010E local currency sales guidance of +6% to +8%, suggesting that the 2H is at least on track with previous expectations given the +7% in the 2Q normalized for Russia was at the low end of the range. Mgt expects FX to have a negligible impact on the sales for the year,” the analysts add. More Analyst Ratings here