The analysts wrote, “Following yesterday’s earnings, we are reiterating our Overweight rating on The Fresh Market and raising our Dec-12 price target to $61 from $55. TFM’s top line and gross margin seem to be gaining momentum, and we have no reason to believe the drivers behind 1Q12′s results will not continue in the future. Additionally, since it is still early in the fiscal year, we think management’s slightly raised guidance could be conservative, which would make the case for further earnings beats more likely. Though TFM is expensive on nearly every valuation metric, we believe the company’s growth potential and recent high-single-digit comps justify the stock’s current premium.”
Shares of The Fresh Market traded up 4.61% during mid-day trading on Thursday, hitting $58.736. The Fresh Market has a 52 week low of $30.86 and a 52 week high of $56.47. The company has a market cap of $2.822 billion and a P/E ratio of 52.48.
The Fresh Market last announced its earnings results on Wednesday, May 30th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The company’s revenue for the quarter was up 22.8% on a year-over-year basis. On average, analysts predict that The Fresh Market will post $0.24 earnings per share next quarter.
TFM has been the subject of a number of other recent research reports. Analysts at Goldman Sachs (NYSE: GS) raised their price target on shares of The Fresh Market from $47.00 to $53.00 in a research note to investors on Thursday. Finally, analysts at UBS AG (NYSE: UBS) raised their price target on shares of The Fresh Market from $54.00 to $63.00 in a research note to investors on Thursday. They now have a “buy” rating on the stock.
The Fresh Market, Inc. is a specialty retailer. As of April 30, 2010, the Company operated 95 stores in 19 states, primarily in the Southeast, Midwest and Mid-Atlantic United States.