UPDATE: Deutsche Bank Initiates Coverage on The Chefs' Warehouse with Hold Rating, $23 PT on Mixed Factors

In a report published Thursday, Deutsche Bank analyst Karen Short initiated coverage on

with a Hold rating and $23.00 price target. In the report, Deutsche Bank “We are initiating coverage of CHEF with a Hold and a $23 price target. Our price target values CHEF at an EV/EBITDA of 11.0x, and a P/E of 24.5x. We have a Hold rating for the following reasons: 1) ROIC has been declining since 1Q12 when acquisitions accelerated, 2) although EV/EBITDAR did narrow from the peak briefly, valuation has since recovered, as a result, relative valuation has widened, and 3) CHEF will transition to a new DC in the Bronx in early 2014, and since the New York market accounts for ~44% and 59% of revenues and EBITDA, respectively, we remain cautious on CHEF until this transition is complete.” The Chefs' Warehouse closed on Wednesday at $23.56.