Jefferies Highlights Snyder's-Lance (LNCE) Potential Following Recent Conference

Jefferies is maintaining its Buy rating and $23 price target on shares of Lance, Inc. (NASDAQ: LNCE) following the opportunity to host Snyder’s-Lance management on the West Coast including Rick Puckett, Mark Carter, and Kevin Henry.

The firm reports that higher than expected revenue growth may lead to stronger than expected EPS figures. The company will begin to sell its company owned routes this month, but mainly to its current drivers. Every 1 percent in additional sales accounts for $0.06 extra of EPS.

Jefferies comments that the company's opportunities fall into three different brackets, expanding geographically, expanding channel penetration and driving innovation.

An analyst at Jefferies states that some headwinds are, "higher costs for inputs which the company projected at $50mm for FY11. With prices continuing to be elevated, and even up for things like packaging, we believe the number could now be higher by roughly $5-$10mm. In addition, competitive pressures remain significant with buy-one-get-one-free activity from Frito-Lay."

For more ratings news on Lance, Inc. click here and for the rating history of Lance, Inc. click here.

Shares of Lance, Inc. closed at $20.82 yesterday.

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