Will Diamond Foods (DMND) Stock Be Helped By This Upgrade?

NEW YORK (TheStreet) -- Shares of Diamond Foods, Inc. (DMND) are up 2.10% to $28.16 in pre-market trade after KeyBanc (KEY) upgraded the company to "buy" from "hold" with a price target of $32.

"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.

Must Read: Warren Buffett's 25 Favorite Growth Stocks


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:

If you liked this article you might like

How Unilever is Cleaning up Its Portfolio

Strong And Under The Radar Today: Diamond Foods (DMND)

Packaged Food Stocks Year in Review; What to Buy in 2016 -- Plus Jim Cramer Comments

Insider Trading Alert - KFS, DMND And MNR Traded By Insiders

How Will Diamond Foods (DMND) Stock React to Earnings Miss?