Dole rallies after attracting mostly positive ratings from analysts

More News Top Stories
Dole rallies after attracting mostly positive ratings from analysts

Dole plc is attracting mainly positive ratings from analysts, helping to boost the company's share price on the New York Stock Exchange.

Goldman Sachs (Buy rating, $26 price target), Deutsche Bank (Buy, $19 PT), Stephens (Overweight, $19 PT) and Davy Securities (Outperform) are all high on the upside, Seeking Alpha reports.

Showing more caution are BMO Capital Markets (Market Perform) and Bank of America (Underweight).

The ratings have begun to come in after the end of the 25-day quiet period for the company, which launched on the NYSE at the end of July.

Bank of America's bearish take is: "Overall, we see limited upside to shares as we believe industry volatility, low margins and an asset-intensive profile will outweigh the potential scale and synergies created by the business combination... Overall we believe a discount is justified given the lack of transparency from a historical results perspective and a low margin profile amidst an inflationary backdrop."

Shares of Dole at the end of Tuesday were up 0.6 percent to $16.06 to trade above the IPO pricing level of $16.00. During Tuesday they reached $16.46, up by 2.56 percent, having fallen to $15.22 a few days ago.

Dole plc was created by a merger between Ireland-based Total Produce and U.S.-based Dole Food Company.

The deal was indented to "simplify the existing structure between the two companies by unifying Dole and Total Produce under common ownership, with the objective of enabling full operational integration, realisation of synergies and value creation across the enlarged business," Total Produce said in February.

Subscribe to our newsletter