UPDATE: Sterne Agee Initiates The Fresh Market on Attractive Risk/Reward Scenario
In a report published on Wednesday, Sterne Agee analyst Charles Grom initiated coverage on The Fresh Market (NASDAQ: TFM) with a Buy rating and a price target of $60.
In the report, Sterne Agee stated, "We see three pockets of upside to our 4.0% SSS forecast. First, based on our new store waterfall, we est. that 17.8% of TFM's comp base will be in the maturity sweet spot (peak SSS trends of 7.0% in years 2/3) in '13 vs. only 13.3% in '12. This benefit should continue - rising to 20.8% and 21.1% in '14 and '15, resp. Second, we think intelligence gathered from its new MicroStrategy system will help TFM make smarter decisions on the promotional front – leading to better sales. Third, upcoming compares ease, partic. in 4Q when TFM will cycle a 1.9% comp."
The Fresh Market closed on Tuesday at $49.07.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.