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.
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