"The recent underperformance in Diamond Foods stock price, elimination of the "tail-risk" associated with the company and an emerging inflection in their Snacks segment growth are the main drivers behind our upgrade of the stock. We acknowledge that the company's nut business is still a long way away from a successful turnaround; however, we think the stock works despite this," the firm said in a note.
Separately, TheStreet Ratings team rates DIAMOND FOODS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMOND FOODS INC (DMND) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: