Oppenheimer Starts Blue Buffalo (BUFF) at Outperform
- Oil steady around $50 on doubts over OPEC output cuts
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- Universal Health (UHS) Disputes and Denies Conclusions in BuzzFeed Article
- Perrigo (PRGO) to Restructure BCH Omega Pharma Belgium Business; Will Terminate EuroGenerics Agreement
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
(Updated - September 9, 2016 9:17 AM EDT)
Oppenheimer initiated coverage on Blue Buffalo (NASDAQ: BUFF) with an Outperform rating and a price target of $30. Analyst Rupesh Parikh thinks the stock deserves a premium given its strong growth trajectory.
Parikh explained, "The company is the leader in the wholesome natural pet food segment. Based on our work, we believe BUFF remains well positioned to benefit from positive category trends including the 'humanization' of pets, premiumization of pet food, and an increased consumer focus on health/wellness. We believe a combination of industry-leading organic sales growth in the high single digits/low double digits, a midteens-plus EPS growth algorithm, and scarcity value in the CPG world should help to sustain a premium valuation and drive outperformance. We also believe the shares could receive some greater interest in the nearer term as investors redeploy proceeds from WWAV toward other natural/organic alternatives."
Shares of Blue Buffalo closed at $25.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Upgrades Tailored Brands (TLRD) to Buy
- Oppenheimer Assumes Lannett Co (LCI) at Perform
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!