Del Monte

Del Monte: Company recently reported its transition Jan-Apr 14 results included contributions from Del Monte Foods Inc. While the losses were not unexpected, CIMB now see FY15 as a transition year with losses as further costs are incurred. House do not foresee profitability till FY16. CIMB maintains Add rating but lowers TP to $0.63 (from $1.14). Given that the US will dominate sales/profits once the operations are successfully integrated, the better comparison may be against listed US peers.