Peter Galbo, an analyst from Bank of America Securities, reiterated the Sell rating on Dole. The associated price target is $14.00.
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Peter Galbo has given his Sell rating due to a combination of factors affecting Dole’s financial outlook. Despite Dole’s second-quarter adjusted EBITDA surpassing expectations, driven by stronger-than-anticipated sales across all segments, the company faced challenges with lower-than-expected gross margins. Additionally, Dole is experiencing tight supply conditions and adverse weather in several Central American markets, which are expected to continue impacting performance into the third quarter.
Galbo has adjusted his future EBITDA estimates downward to reflect the uncertain macroeconomic environment that Dole describes as ‘dynamic,’ with potential short-term supply issues. The company’s valuation is considered at a discount compared to its peers due to industry volatility. Consequently, Galbo maintains an Underperform rating with a price objective of $14, reflecting a cautious outlook on Dole’s ability to navigate these challenges effectively.