Chiquita shares jump on better quarterly results

Aug 1 (Reuters) - Shares of Chiquita Brands International Inc (CQB.N) rose as much as 15 percent Friday, a day after the banana producer posted quarterly profit above market estimates as higher banana prices offset rising product supply costs. Chiquita, known for its namesake bananas and Fresh Express bagged salads, benefited from rising banana prices due to disrupted supply caused by bad weather in parts of Latin America.

Banana pricing is expected to remain "very solid" for the rest of the year, with pricing in the United States to be up about 35 percent to 40 percent from last year, BB&T Capital Markets analyst Heather Jones said in a note to clients.

Jones has a "hold" rating on Chiquita stock.

However, Morgan Stanley analyst Vincent Andrews said he expects banana profitability will be held back by weakness in the Fresh Express bagged salads.

The salad and healthy snack business posted an operating loss of $6 million in the second quarter, hurt by rising fuel, packaging and product costs.

Andrews said in a note to clients that he is skeptical that pricing in this segment will catch up with costs in the short-term, given the weakening consumer spending.

Andrews has an "equal-weight" rating and a price target of $18.0 on Chiquita stock.

Shares of the Cincinnati-based company rose to a high of $17.61 before paring some of their gains and were up $1.59 at $16.94 in afternoon trade on the New York Stock Exchange.