UPDATE: Jefferies Initiates Coverage on The Container Store Group with Hold Rating, $37 PT on Valuation

In a report published Tuesday, Jefferies analyst Daniel Binder initiated coverage on

with a Hold rating and $37.00 price target. In the report, Jefferies noted, “We are upbeat on this company and believe it has a long runway for unit growth ahead. Mgmt. has executed its growth strategy well and distinguished TCS in the market as the premier specialty storage and organization store. Valuation appears to fairly reflect growth prospects, particularly when we consider 10% unit growth, 3-4% SSS (with negative transactions), and an EBIT margin expansion story that is primarily about expense leverage.” The Container Store Group closed on Monday at $38.20.