Lance downgraded to "neutral"

04/19/07 - Davenport & Co.

NEW YORK, April 19 (newratings.com) - Analysts at Davenport & Company downgrade Lance Inc (LNCE) from "buy" to "neutral."

In a research note published this morning, the analysts mention that the downgrade in rating reflects the company’s reduced guidance, following 4Q06 results. Lance’s revenues are expected to have grown by 1%-2% to $190 million and gross margins might have expanded slightly to 43.7% in 1Q, the analysts say. For the full year, the company is likely to post double-digit operating income growth, driven by continued operating margin expansion of approximately 90-100bps, Davenport & Company adds.