Markets & Finance

Raymond James Upgrades Tupperware to 'Strong Buy'

Raymond James upgraded Tupperware (TUP) to strong buy from underperform.

Analyst Budd Bugatch says the maker of plastic storage containers is capitalizing on a market-driven opportunity. The upgrade is based on the company's outsized current dividend yield; a stock price that appears to now discount near-term deteriorating operating results, and the risk that this will continue. Bugatch says at $16 per share, the dividend yield is about 5.5%. He says this is a benchmark yield that represents his estimate of a long-term, risk free rate.

He also notes at this price, the stock promises investors an adequate cash return while waiting for a stock price catalyst. He is keeping his $1.58 2002 and $1.76 2003 earnings per share estimates Bugatch has a $20 target.

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