Guggenheim Starts Blue Apron (APRN) at Buy

(Updated - September 25, 2017 9:06 AM EDT)

(updated to expand analyst comment)

Guggenheim initiates coverage on Blue Apron (NYSE: APRN) with a Buy rating and a price target of $9.00.

Analyst Matt DiFrisco is positive on the company and expects it to be LT play on consumer wallets. The analyst makes a call for sales to grow "conservatively" from $800 million in 2016 to nearly $1.6 billion in 2020.

The analyst values shares using 16.5x EBITDA multiple to his 2020 EBITDA estimate of $128.8 and discounts back using the company's 6.7% WACC. The analyst forecasts APRN will have about $260 million in cash by the end of Q3 2017 which he believes will be sufficient to fund the business for three more years with similar performance and would cover near-term funding requirements.

FY 2017 EPS estimate is for ($1.00) and FY 2018 EPS estimate is for ($0.75).

For an analyst ratings summary and ratings history on Blue Apron click here. For more ratings news on Blue Apron click here.

Shares of Blue Apron closed at $5.19 Friday.

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