UPDATE: Deutsche Bank Initiates Coverage on The Fresh Market on Attractive Entry Point
In a report published Thursday, Deutsche Bank analyst Karen Short initiated coverage on The Fresh Market (NASDAQ: TFM) with a Buy rating and $58.00 price target.
In the report, Deutsche Bank noted, “TFM has definitely experienced challenges in the last few quarters; nonetheless, we believe the current level presents an attractive entry point for the following reasons: 1) the stock has significantly underperformed over the past year; 2) lease-adjusted ROIC is high, but has been lumpy due in part to noise around the entry into Houston, which should abate; 3) valuation has come down in tandem with ROIC, but once ROIC rebounds, we believe the multiple will expand as well; 4) based on our recent price checks, we believe TFM has improved its relative price position; and 5) we think the ‘lower' new store productivity in 2Q13 was a one-off associated with Houston.”
The Fresh Market closed on Wednesday at $47.28.
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