RBC Capital Remains Confident in Natural Grocers (NGVC) Despite Increased Risk - PT to $29

RBC Capital maintained an Outperform rating on Natural Grocers (NYSE: NGVC), and cut the price target to $29.00 (from $32.00), following the company's 1Q earnings report. Natural Grocers reported comparable store sales growth of +3.6% (cons. +4.5%), $167.8m of revenue (cons. $171.5m), and $0.17 of EPS (cons. $0.17). The results were slightly below management expectations.

Analyst William Kirk commented, "We are still very confident in the long-term opportunity at Natural Grocers. However, the lower-than-expected first-half of FY16 puts increased pressure on back-half improvements. We believe a MSD comparable store sales grower with a compelling, profitable unit expansion opportunity is very attractive at ~7x EV/NTM EBITDA. With customers, Natural Grocers rates best (in our coverage) and in-line with highly revered Trader Joe's."

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 $18.01 yesterday.

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