UPDATE: Bank Of America Downgrades The Fresh Market On Valuation And Uncertainty

In a report published Tuesday, Bank of America analyst Robert F. Ohmes downgraded the rating on

from Buy to Neutral, but reiterated the $45.00 price target. In the report, Bank of America noted, "TFM's reported F4Q15 adj. EPS of $0.55 (excl. a loss per share of $0.06 from the newly announced California exit) was roughly in-line with our $0.54 forecast and above the consensus est. of $0.51. Gross margin of 34.3% (vs. our 34.0% est.) increased 80 bps y/y on more optimized price investments and promotions as well as supply chain and occupancy leverage. SGA expenses as a percent of sales were 22.8%, above our 21.8% estimate but down 80bps y/y mainly on expense leverage. We are lowering our F16 adj. EPS estimate to $1.85 (was $1.90), in line with new F16 guidance of $1.85-$1.92, which includes a $0.08 benefit from a 53rd week." The Fresh Market closed on Monday at $40.92.