Piper Jaffray Cuts Price Target on The Fresh Market (TFM) to $26.00 Following 2Q15 Results
Piper Jaffray maintained a Neutral rating on The Fresh Market (NASDAQ: TFM), and cut the price target to $26.00 (from $37.00), following the company's 2Q15 earnings results. Revenues reported at $442.1M beat consensus' $458.34M. TFM reported EPS of $0.36, beating consensus estimates of $0.40. Management cut comp guidance to (1.0%) to (2.5%) and adjusted EPS to $1.55-$1.65 from $1.85-$1.93. Analyst Sean Naughton said that management also plans to open 1 less store this year and is re-evaluating its current pipeline of leases.
Naughton commented, "Earlier tonight, The Fresh Market reported disappointing Q2 results where comp sales decelerated further in the quarter to (1.0%). Changes in promotional plans didn't drive the traffic and sales results management hoped for, leading the company to reduce its full year comp and earnings outlook. Given heightened competition and TFM's premium
price points, we see further pressure on comps and margins. We remain Neutral on TFM shares as the outlook worsens and efforts to reverse declining sales trends fail to gain traction."
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Shares of The Fresh Market closed at $26.59 yesterday.