RBC Capital Cuts Price Target on Natural Grocers (NGVC) as 1Q Results Miss Management Expectaions

RBC Capital reiterated 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 1Q comparable store sales growth of +3.6%, compared to consensus estimates of +4.5%. The company's $167.8m in revenue, missed consensus' $171.5m. However, $0.17 of EPS was in-line with estimates. 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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