Tupperware Corp. (TUP ) posted $0.33 vs. $0.33 Q1 EPS from operations, and sees a mid-single-digit percentage increase in Q2 net income. Raymond James upgraded its rating on the shares to strong buy from market perform.
Analyst Budd Bugatch says three catalysts prompted the upgrade. He cites confirmation of a trend originally seen late last year (i.e., as the domestic economy weakens, the company's salesforce recruitment should become easier). He notes Tupperware's attractive entry point after the retreat in its stock price. Moreover, the analyst says the company's acquisition of BeautiControl has been less dilutive to date than expected, with its forward dilution no worse than estimated. He has a $27 12-month price target on the shares.