UPDATE: Credit Suisse Initiates Coverage On The Fresh Market

In a note released Thursday morning, Credit Suisse analyst, Edward Kelly initiated coverage on The Fresh Market

with an Underperform rating and a $29 price target. Shares of the company have fallen ~1.3 percent in the pre-market to ~$31.37 following the release of Kelly's note. Although Kelly says The Fresh Market is the cheapest way to get in on the healthy living movement, he sees the company as having some structural concerns that warrant a discount. These concerns include ramping competitive pressure, execution issues in new markets, and declining margins and returns. Of these, Kelly appears to be the most worried about the competitive environment, given the push by Whole Foods

in particular and supermarkets in general to improve both position and price in the market.