UPDATE: Piper Jaffray Lowers PT on The Fresh Market Following FQ2 EPS Report
In a report published Thursday, Piper Jaffray analyst Sean P. Naughton reiterated an Overweight rating on The Fresh Market (NASDAQ: TFM), but lowered the price target from $67.00 to $59.00.
In the report, Piper Jaffray noted, “Last night, TFM reported FQ2 EPS of $0.32 versus our $0.31 estimate and consensus of $0.32 driven by strong expense leverage due to lapping of one-time costs. Revenue of $355M slightly missed consensus of $357M due to weak new store performance despite comps beating consensus by 40bps. Additionally, the company lowered the high end of its EPS guidance from $1.58 to $1.55 due to the pull forward of new store costs, higher inflation and slower new store sales growth. Overall, we think the stock will suffer a setback this morning as investors recalibrate expectations for faster earnings growth in 2014. Reiterate OW.”
The Fresh Market closed on Thursday at $54.28.
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