UPDATE: Stifel Initiates Coverage on Zulily with Buy Rating, $30 PT on Buying Opportunity

In a report published Thursday, Stifel analyst Scott Devitt initiated coverage on

with a Buy rating and $30.00 price target. In the report, Stifel noted, “We are initiating coverage of zulily with a Buy rating on the shares and $30 target price. zulily is a flash sales eCommerce platform that sells products from over 15,000 small and large vendors primarily to moms in North America. The company's flash sales model, exclusive content, and growing target audience create a differentiated platform with a solid growth profile and limited inventory risk. We evaluate zulily's competitive position relative to other specialty eCommerce peers, Wayfair and Zalando, and major discount retailers like TJ Maxx and Ross. We believe that the company's early profitability, growth opportunities, and competitive position make it an appealing long-term asset, especially at a time when investors are more averse to high multiple companies. However at a 2016 EV/Revenues multiple of 1.0x, zulily shares trade broadly in line with peers (W: 0.8x, ZAL-DE: 1.2x*) and below traditional discount retailers (TJX: 1.4x, ROST: 1.6x). We believe shares should trade closer to 1.4x. In our view this dislocation presents a buying opportunity as the company continues to differentiate itself from competitors and expand its addressable market.” Zulily closed on Wednesday at $21.95.