UPDATE: J.P. Morgan Upgrades The Fresh Market to Overweight

J.P. Morgan is out with its report today on The Fresh Market

, upgrading shares of TFM from Neutral to Overweight. In a note to clients, J.P. Morgan writes, "We are assuming coverage of The Fresh Market and upgrading to Overweight from Neutral. Our Dec-11 target price goes to $42 from $33 and we see 19% upside in the stock over the next six months. Based on our bottom-up analysis, we believe the consensus forecasts are too low. Our new estimates are the highest on the Street despite our model's assumption that GDP slows greatly. Though we model <4% ID sales growth in FY11-12, we see a ~15% ongoing contribution from new stores. The stock is not cheap but has a reasonable valuation given TFM's unique growth potential (only 5 of 114 retail stocks should have better sales growth next year, per consensus)." Shares of TFM closed Friday at $35.35, up 1.43% from Thursday's close.