Cautious Outlook on Dole: Low Margins and Limited Upside Potential

Bryan Spillane, an analyst from Bank of America Securities, maintained the Sell rating on Dole (DOLE – Research Report). The associated price target remains the same with $14.00.

Bryan Spillane’s rating is based on a combination of factors that highlight Dole’s less favorable position compared to other food-related companies. Despite Dole’s first-quarter performance exceeding expectations with an adjusted EBITDA of $104.8 million, the company’s gross margins were lower than anticipated, which raises concerns about its profitability.
Spillane maintains a cautious outlook, emphasizing that Dole’s value proposition is less attractive due to its low margins and return on capital. The price objective remains at $14, reflecting a valuation based on a 4.8x CY26 EV/EBITDA multiple. This cautious stance is further supported by the company’s forecasted performance and market conditions, which suggest limited upside potential for the stock.

DOLE’s price has also changed moderately for the past six months – from $16.780 to $13.910, which is a -17.10% drop .