Dutton Associates Announces Investment Opinion: Vita Food Products Speculative Buy Rating in Update Coverage by Dutton Associat
April 19 2006 - 12:00PM
Business Wire
Dutton Associates continues its coverage of Vita Food Products
(AMEX:VSF) maintaining a Speculative Buy rating and raising its
target price to $3.60. The 10-page report by Dutton senior analyst
Gerald F. LaKarnafeaux, CFA, is available at www.jmdutton.com as
well as from First Call, Bloomberg, Zacks, Reuters, and other
leading financial portals. The Company has been undergoing a
transition in management since June of 2005, when CFO Cliff Bolen
was promoted to Chief Operating Officer. The recent changes call
for the establishment of an Office of Chief Executive. Revenues in
2005 continued the under-performance reported over the past two
years. Revenues in 2005 were down by 3.9% to $46.9 million, while
revenues in the fourth quarter were higher by approximately 2%. The
Company has reported strong qualitative and quantitative
fundamentals over the past six months. The stock has responded by
appreciating from $2.40 per share to the current price of $3.35 per
share, which is 6% above our last target price of $3.15 per share.
We believe the fundamentals justify an increase in the 12-month
target price to $3.60 per share. In 12 months, we believe the
Company should report earnings per share of $0.21, with the
prospects of higher earnings in 2007. The price earnings ratio on
the new target price is 17 times, which is reasonable for a food
processing stock considering the anticipated strong relative
earnings performance. We admonish the reader that the sharp
appreciation in recent weeks could result in short term volatility
until the first quarter is reported in the next six weeks. However,
in spite of the potential profit-taking following the run up in the
stock, we are maintaining our Speculative Buy rating. About Dutton
Associates Dutton Associates is one of the largest independent
investment research firms in the U.S. Its 29 senior analysts are
primarily CFAs, and have expertise in many industries. Dutton
Associates provides continuing analyst coverage of over 130
enrolled companies, and its research, estimates, and ratings are
carried in all the major databases serving institutions and online
investors. The cost of enrollment in our one-year continuing
research program is US $35,000 prepaid for 4 Research Reports,
typically published quarterly, and requisite Research Notes. Dutton
Associates received $71,000 from the Company for 12 Research
Reports with coverage commencing on 5/07/2002. The Firm does not
accept any equity compensation. Our principals and analysts are
prohibited from owning or trading in securities of covered
companies. The views expressed in this research report accurately
reflect the analyst's personal views about the subject securities
or issuer. Neither the analyst's compensation nor the compensation
received by us is in any way related to the specific ratings or
views contained in this research report or note. Please read full
disclosures and analyst background at www.jmdutton.com before
investing.
Vita FD Products (AMEX:VSF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Vita FD Products (AMEX:VSF)
Historical Stock Chart
From Jul 2023 to Jul 2024