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Specialty Food Retailers Rise On Heels Of Fresh Market Q2 Results

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Fresh Market (NASDAQ: TFM) gained more than eight percent Friday after the company said second-quarter sales grew 19 percent.

Other stocks in the specialty foods space followed suit with Fairway Group (NASDAQ: FWM) up 5.5 percent, Sprouts Farmers Market (NASDAQ: SFM) up three percent and Whole Foods Market (NASDAQ: WFM) gaining two percent in afternoon trading.

Despite its stellar sales growth, Fresh market posted a 27 percent drop in profits on higher costs Thursday after the bell, with comparable-store sales rising 2.9 percent.

But Fresh Market's current share valuation prompted B&T Corp.'s Andy Wolf to upgrade Fresh Market to Buy from Hold Friday with a $41 target.

UBS' Jason DeRise reiterated a Buy rating on Fresh Market and $44 target, citing easier profit comparisons for the third quarter as well as improved financial controls at the company.

Yet Fresh Market's recent higher costs that caused its steep earnings decline, plus expectations of low single-digit same-store sales growth worried Goldman Sachs' Stephen Grambling enough to reiterate his Sell rating.

Fresh Market traded recently at $33, up 8.4 percent.

Latest Ratings for TFM

DateFirmActionFromTo
Apr 2016Credit SuisseTerminates Coverage OnNeutral
Apr 2016Stephens & Co.DowngradesOverweightEqual-Weight
Mar 2016Morgan StanleyUpgradesUnderweightEqual-Weight

View More Analyst Ratings for TFM
View the Latest Analyst Ratings

 

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Posted-In: Andy Wolf B&T Corp.Earnings News Upgrades Price Target Intraday Update Analyst Ratings

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StockFirmActionPT
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STTCredit SuisseMaintains90.0
AQUACredit SuisseMaintains37.0
CVNAJefferiesMaintains400.0
TGTArgus ResearchMaintains265.0
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