Chiquita Maintained At Buy

Chiquita Brands International, Inc. (NYSE: CQB) attended an investor meeting held by BB&T Capital Markets. Key takeaways from the meeting were:

"Local EU banana pricing has improved considerably and we estimate will be up in the mid- to high-single-digit range for CQB for Q3. Although the euro is down yr/yr, it has improved significantly from its nadir in Q2 and is modestly higher than when management updated guidance on its Q2 earnings call. Conversely, the cost environment has deteriorated somewhat. As we have noted before, Chiquita has advantaged containerboard contracts, so it is largely protected from the recent increases. However, key Latin American currencies have appreciated considerably over the past year and especially the past quarter. This should result in higher fruit costs."

Estimates remain unchanged and BB&T maintains its Buy rating and $16 price target.

Chiquita brands International closed yesterday at $13.58.