Tupperware up, analyst won't cut estimates

Earlier this week Dow Chemical Co. said it would raise all product prices by as much as 20 percent, starting Sunday, to offset energy and feedstock costs. Dow is among the chemical companies that supplies resin, which is used in plastics. Companies that use plastics, like Tupperware, would therefore have to absorb the climbing resin costs.

In a note to clients, Douglas Lane of Jefferies & Co. said Tupperware, a direct seller of plastic containers and beauty items, has yet to miss a quarter due to resin costs since going public in 1996. It also achieves pricing advantages through its direct sales outlet.

Tupperware may also benefit from the pricing power of new products. With 25 percent of its sales coming from items that have debuted in the past two years, the company stands to gain from a favorable mix that allows new products to be introduced at higher price points, Lane explained.

The analyst maintained a "Buy" rating and $53.50 price target.

Shares of Tupperware Brands added $1.88, or 5.2 percent, to $38.30. Over the past year, the stock has traded in a range of $23.60 to $44.98.