Deutsche Bank Starts The Fresh Market (TFM) at Hold; Positive on Recent Pullback, But Need More Visibility
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Price: $28.51 --0%
Rating Summary:
4 Buy, 16 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
Rating Summary:
4 Buy, 16 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
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Deutsche Bank initiates coverage on The Fresh Market (NASDAQ: TFM) with a Hold. PT $33.00.
Deutsche analyst says, "While the stock's ~10% pullback year-to-date has tempted us to get constructive, we're going to await greater visibility on shopping patterns at the high-end post the equity market's recent volatility, which will have a direct impact on SSS/EPS. Moreover, at 28.6x our FY12 EPS of $1.33, the stock appears to already discount many of TFM's favorable attributes, including: (1) concept, (2) GPM opportunities, (3) LT growth targets, and (4) upper-income niche."
"We are forecasting 3Q11 EPS of $0.19 (up +16.6% year-over-year) – a penny below Consensus. We expect solid EPS growth to be led by top-line growth of +9.5%, driven by an increase in square footage of +5.2% and comps of +4.5% (vs. +5.3% in 3Q last year)...We’re forecasting FY11 EPS of $1.05 (+22.2% year-over-year), in-line with management’s guidance of $1.03 - $1.06, which was raised on August 31st (from a range of $1.01-$1.05), but below the $1.06 Consensus estimate."
For more ratings news on The Fresh Market click here and for the rating history of The Fresh Market click here.
Shares of The Fresh Market closed at $38.09 yesterday.
Deutsche analyst says, "While the stock's ~10% pullback year-to-date has tempted us to get constructive, we're going to await greater visibility on shopping patterns at the high-end post the equity market's recent volatility, which will have a direct impact on SSS/EPS. Moreover, at 28.6x our FY12 EPS of $1.33, the stock appears to already discount many of TFM's favorable attributes, including: (1) concept, (2) GPM opportunities, (3) LT growth targets, and (4) upper-income niche."
"We are forecasting 3Q11 EPS of $0.19 (up +16.6% year-over-year) – a penny below Consensus. We expect solid EPS growth to be led by top-line growth of +9.5%, driven by an increase in square footage of +5.2% and comps of +4.5% (vs. +5.3% in 3Q last year)...We’re forecasting FY11 EPS of $1.05 (+22.2% year-over-year), in-line with management’s guidance of $1.03 - $1.06, which was raised on August 31st (from a range of $1.01-$1.05), but below the $1.06 Consensus estimate."
For more ratings news on The Fresh Market click here and for the rating history of The Fresh Market click here.
Shares of The Fresh Market closed at $38.09 yesterday.
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