Oppenheimer Starts Blue Buffalo (BUFF) at Outperform

September 8, 2016 4:41 PM EDT
Get Alerts BUFF Hot Sheet
Price: $24.90 --0%

Rating Summary:
    7 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(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."

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

Shares of Blue Buffalo closed at $25.94 yesterday.

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