UPDATE: Deutsche Bank Raises PT to $45 on The Fresh Market
Deutsche Bank increases its price target from $33 to $45 The Fresh Market (NASDAQ: TFM) on the company's strengths, but maintains the rating on Hold for shares as it believes valuation is currently full.
Deutsche Bank notes, "TFM checks a lot of the boxes we look for in a great retail investment: (1) sq. ft. growth, (2) operating margin opportunity, (3) an improving B/S, and (4) accelerating traffic. Net, we really like the differentiated concept and the focus on quality perishables, which taps growing demand for health/wellness-related products. That said, with TFM trading at 40x our FY12 EPS est, we believe many of TFM's positive attributes have been fully discounted by the market."
TFM closed at $52.26 yesterday.
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