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Sep 8 2020, 07:00 IST/BST
The underperformance of the Total Produce equity is materially divorced from recent operational execution and delivery. Strong first-half trading is evidence of an agile economic model and resilient category. We believe such quality and defensive attributes are being overlooked by the market – in addition to the growth opportunity of Dole and flexibility afforded by a prudent deal structure. We see material upside to the equity (+70%) and believe the valuation discount to peers is unwarranted. We reiterate our ‘Outperform’ rating on the stock.