UPDATE: Deutsche Bank Downgrades The Fresh Market to Hold on Slowdown, Executive Resignation

Deutsche Bank reduced its rating on The Fresh Market

from Buy to Hold and cut its price target from $64 to $54. Deutsche Bank commented, "On the heels of (1) the surprise resignation of CFO Lisa Klinger; (2) an "OK" 3Q print w/SSS + 5.6%; and (3) most concerning - growing concerns of a rapid slow-down in consumer spending at the high-end over the past 2 months - we are downgrading the stock to Hold and recalibrating our PT to $54 from $64. Along these lines, while the high-end has held in remarkably strong over the past 2 years, we are incrementally more concerned that upper-income spending could decelerate – putting Fresh Market right in the crosshairs, particularly w/ the stock trading at 34x. Moreover, the departure of Ms. Klinger augments the execution risk profile of the company, particularly as it transports to the state of California." The Fresh Market closed at $60.24 on Tuesday.