Fresh Del Monte Produce, Inc.
Fresh Del Monte Produce, Inc. (NYSE: FDP) is a global producer, marketer, and distributor of fresh fruits and vegetables. It also manufactures and distributes juices, beverages, and snacks. Retailers, foodservice operators, wholesalers, and other distributors get the merchandise. The company operates a trucking company and uses asset-based carriers to distribute by land, and it delivers by sea using its fleet of ships combined with hired chilled vessels.
Why should Investors make an Exit?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
FDP's stock price has been on a bearish trend throughout the year, fallen 21.82% in the past nine months, and is currently leaning towards the lower band of its 52-week range of USD 24.10 to USD 36.57. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 23.00.
Considering the current trading levels, leveraged balance sheet, a decline in cash position, industry lagging margins, and current valuation, we recommend a "Sell" rating on the stock at the closing price of USD 25.91, down 0.35% as of March 31, 2022.
Three-Year Technical Price Chart (as of March 31, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.