Mission Produce Inc T.AVO

Primary Symbol: AVO

Consumer Defensive Farm Products

Mission Produce, Inc. is engaged in the farming, packaging, marketing, and distribution of avocados to food retailers, distributors and produce wholesalers. It operates through three segments: Marketing and Distribution, International Farming, and Blueberries. Its Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. Its farming activities range from cultivating early-stage plantings to harvesting from mature trees. Its Blueberries segment is a farming operation that cultivates blueberry plants in Peru. It provides value-added services including ripening, bagging, custom packaging, logistical management, and quality assurance. The Company also provides its customers with merchandising and promotional support, insights on market trends and hands-on training.

NDAQ:AVO - Post by User

Mission Produce Inc

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Post by shakerman640on Sep 04, 2015 3:50am

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Post# 24077952

BMO: Market Perform rating and $17 target price for Avigilon

According to BMO Capital Markets:

https://is.gd/I2aig8

Avigilon

(AVO-TSX)

Rating: Market Perform

Target Price: $17.00↓

Total Return: 45%

September 4, 2015

Trimming our Target Price Following Recent Executive Departures

Event

We’re reducing our target price on Avigilon to $17 following the recent executive departures. To recap, Avigilon announced earlier this week that COO Bryan Schmode and SVP Operations Collis Heath will be leaving the company effective immediately. Mr. Schmode has been a key member of Avigilon’s executive team since 2008, having served as head of sales for much of that time, and having been promoted to COO in March 2014. Mr. Heath had joined the company earlier this year. According to the company, the departures were driven by a streamlining of the management structure, as all of Avigilon’s key departments will now report directly to the CEO, Alex Fernandes. Our understanding is that Mr. Fernandes is now better able to take a more hands-on role in managing functional areas such as sales, marketing and operations, now that some of the company’s prior strategic priorities (such as completing the video analytics acquisitions and establishing the legal team and IP licensing strategy) have been addressed.

Impact & Analysis

We understand the reasons for the departures and believe that the new reporting structure might well prove to be a longer-term positive for the company. However, we think that investor concerns related to execution risk, as well as to Avigilon’s ability to recruit and retain senior talent, are likely to weigh on the stock’s multiple in the near/medium-term.

Valuation & Recommendation

No changes to our forecasts. We’ve reduced our target price to $17, reflecting16x CY2016E adj. P/E, and remain Market Perform on the stock. We view the stock’s valuation as attractive relative to its growth rate, but would like better confidence with respect to our FY2016 forecasts given that there have been several consecutive quarters of negative EPS estimate revisions.

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