UPDATE: Credit Suisse Initiates Coverage On Smart & Final Stores On Balanced Risk/Reward

In a report published Tuesday, Credit Suisse analyst Edward J. Kelly initiated coverage on

with a Neutral rating and $15.00 price target. In the report, Credit Suisse noted, “We are initiating coverage of SFS with a Neutral rating and a $15 target price. We view SFS as one of the more differentiated stories in food retail, given its hybrid grocery/club store model, value pricing, market-leading offering of bulk pack sizes, and significant new store plan. However, store growth is the key tenet of SFS's long-term outlook, and execution risk is higher than at other growth companies, as its track record is limited. While we expect solid near-term results and believe its long-term prospects are compelling, the risk/reward profile appears balanced at the current valuation.” Smart & Final Stores closed on Tuesday at $14.45.