Deutsche Bank Downgrades The Fresh Market (TFM) to Hold on CFO Departure and Slowing Growth

November 28, 2012 11:18 AM EST Send to a Friend
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Price: $36.71 +2.11%

Rating Summary:
    9 Buy, 10 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 45 | New: 4
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Deutsche Bank downgraded The Fresh Market (NASDAQ: TFM) from Buy to Hold with a price target of $54.00 (from $64.00) following Q3 results and the resignation of the CFO Lisa Klinger.

The firm comments, "On the heels of (1) the surprise resignation of CFO Lisa Klinger; (2) an "OK" 3Q print w/SSS + 5.6%; and (3) most concerning - growing concerns of a rapid slow-down in consumer spending at the high-end over the past 2 months - we are downgrading the stock to Hold and recalibrating our PT to $54 from $64. Along these lines, while the high-end has held in remarkably strong over the past 2 years, we are incrementally more concerned that upper-income spending could decelerate – putting Fresh Market right in the crosshairs, particularly w/ the stock trading at 34x. Moreover, the departure of Ms. Klinger augments the execution risk profile of the company, particularly as it transports to the state of California."

Deutsche Bank takes down FY12 EPS est to the high-end of guidance at $1.38 (+29% YOY) from $1.40 and are taking down FY13 EPS est to $1.75 (+27% YOY) from $1.85.

For an analyst ratings summary and ratings history on The Fresh Market click here. For more ratings news on The Fresh Market click here.

Shares of The Fresh Market closed at $60.24 yesterday.


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