Fresh Del Monte Produce (NYSE:FDP) Has Few Short-term Catalysts - Time to Get Out?

In the near term there are few - if any - catalysts that could give Fresh Del Monte Produce (NYSE:FDP) a boost, and Standpoint Research sees it as an opportunity to get out of the company after a significant increase in the share price over the last year.

Standpoint Research said, "FDP is dealing with a host of issues including but not limited to competition, pricing pressure, rising costs, divestitures, inability to grow revenues and weather-related issues. The company is dealing with weakness in many markets with little near-term expectation for significant improvement. Market conditions in Europe are complicated and there are foreign exchange risks as well - mainly versus Central America. We see the recent strength and 50% gain in the share price since Q3, 2009 as an opportunity to get out of this volatile name. We maintain our Buy rating and $18 target on Chiquita NYSE:CQB). We arrive at this price target by attaching a conservative 9X multiple to $2.00 in earnings potential looking out to 2011-2012. Recent supply declines in the industry will lead to higher prices, margins and profits in the near-term. CQB makes the bulk of its earnings in the June quarter."

Fresh Del Monte Produce was downgraded by Standpoint, and closed Monday at $24.48, down $0.48, or 1.05 percent.