Investment thesis;
Despite weaker YoY 2Q15-2H15 core earnings expectations (led by lower GM for tuna and shrimp), we reiterate our BUY rating on TUF, premised on the positive long-term benefits from its Bumble Bee acquisition, its QoQ gradual improvement in OEM tuna margin and sales volume, and the QoQ recovery of its shrimp margin to a normalized level once shrimp prices find greater stability in 2H15.
Despite weaker YoY 2Q15-2H15 core earnings expectations (led by lower GM for tuna and shrimp), we reiterate our BUY rating on TUF, premised on the positive long-term benefits from its Bumble Bee acquisition, its QoQ gradual improvement in OEM tuna margin and sales volume, and the QoQ recovery of its shrimp margin to a normalized level once shrimp prices find greater stability in 2H15.
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