Dole plc (DOLE), mcap=$750, price $7.91 vs $9.00

$DOLE pitch:
– A global leader in the distribution of fresh fruits and vegetables – busted IPO from 2021.
– 1.7x the size of its biggest competitor.
– Trades materially below peers and historical valuations.
– Temporary issues and product recalls have impacted profitability and caused a share price slump post IPO.
– Once resolved, the valuation gap to peers should close.
– Management is owner-operators – well-respected industry veterans with a long track record of managing the business for the long term.
– Insiders own 10% of the company.

$DOLE valuation:
– Trades at less than 6.7x 2022 EBITDA and 10x 2022 EBITDA less Capex.
– Peers $CVGW and $AVO are at 21x and 18x respectively.
– Lower quality peers $FDP sits at 11x.
– Conservative DCF and peer valuation indicate a well-protected downside and at least +100% upside from current levels.

Exp. gain: +100% to $20-$25/share

Full DOLE write-up (free guest account required):

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