Jefferies Starts Natural Grocers (NGVC) at Buy; Sees 18-20% Growth

Jefferies initiates coverage on Natural Grocers (NYSE: NGVC) with a Buy rating and a price target of $31.00, saying the company is on track for 18-20% growth.

Analyst Mark Wiltamuth commented, "While peers are facing sales and margin headwinds, we believe NGVC will buck these trends as 1) our analysis shows fewer new store incursions in 2015, 2) a 100% organic produce focus keeps it out of deflation, and 3) a low-priced/differentiated offering helps shield it from competitor discounting. Fueled by 20% unit growth (highest in industry), we see 18-20% EPS growth. At just 8.7x 2016 EV/EBITDA, NGVC screens as undervalued vs. other high growth retailers."

For an analyst ratings summary and ratings history on Natural Grocers click here. For more ratings news on Natural Grocers click here.

Shares of Natural Grocers closed at $23.07 yesterday.

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