UPDATE: Sterne Agee Downgrades The Fresh Market On Struggles To Build Brand Equity
In a report published Friday, Sterne Agee analyst Charles Grom downgraded The Fresh Market (NASDAQ: TFM) from a Buy rating to a Neutral rating and lowered the price target from $59.00 to $44.00.
In the report, Sterne Agee says "TFM is a great concept in markets where shoppers know the brand. Unfortunately, its growing pains outside its core SE base have been painful (and could continue to be) as: 1) TFM struggles to build brand equity acquiring new shoppers and 2) competition heats up. This could lead to lower 4-wall returns going forward and/or TFM lowering its LT store goal of 500 locations. Layer a more fragile shopper into the mix and these issues are amplified. We are downgrading to Neutral as a result."
The Fresh Market closed on Friday at $50.40.
Latest Ratings for TFM
|Apr 2016||Credit Suisse||Terminates||Neutral|
|Apr 2016||Stephens & Co.||Downgrades||Overweight||Equal-weight|
|Mar 2016||Morgan Stanley||Upgrades||Underweight||Equal-weight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.