Analyst: CEO Shakeup Could Be Key Ingredient In Blue Apron's Turnaround

After a disappointing launch as a public company, Blue Apron Holdings Inc APRN announced Brad Dickerson, a Blue Apron insider and former CFO and COO of Under Armour Inc UAA, would immediately replace founder Matt Salzberg as CEO.

Some on the Street are optimistic that “turnover” could equate to “turnaround.”

The Rating

KeyBanc Capital Markets analyst Edward Yruma maintained a Sector Weight rating on Blue Apron with no price target.

The Thesis

KeyBanc considers Blue Apron relatively inexpensive, with growth potential in an untapped grocery e-commerce market.

The firm’s leadership change only strengthens the thesis, Yruma said. (See Yruma's track record here.)

Dickerson is better equipped than Salzberg to improve financial results, the analyst said. 

“We view the CEO transition at APRN favorably,” Yruma said. “We believe that Brad Dickerson’s operational expertise as well as strategic acumen should help improve performance at APRN.”

KeyBanc maintains a “constructive” long-term outlook dependent on execution at Blue Apron’s new Linden, New Jersey fulfillment center. The company’s Thursday 8-K filing confirmed that Linden’s on-time-in-full rates were on par with those of other facilities, and management reaffirmed guidance.

Price Action

Blue Apron traded up 8 percent premarket.

Related Links:

The Pros, Cons Of Blue Apron After Its Post-IPO Plunge

KeyBanc: Blue Apron Could Be A ‘Compelling Acquisition Target’

Photo courtesy of Blue Apron.