UPDATE: Deutsche Bank Initiates Coverage On Smart & Final Stores On Differentiated, Value-Oriented Disruptor

Courtesy of Benzinga.

In a report published Monday, Deutsche Bank analyst Karen Short initiated coverage on Smart & Final Stores Inc (NYSE: SFS) with a Buy rating and $17.00 price target.

In the report, Deutsche Bank noted, “SFS is well-positioned to be a disruptor in food retail and foodservice distribution. At the S&F banner, the company will continue gaining share through aggressive pricing, a high-quality offering, and convenient locations – leading to consistent 4+% comp growth. Given S&F’s significant unit potential, the company should be able to grow units by 10%/yr for 7 yrs in existing and adjacent markets. In the future, C&C also represents a significant growth opportunity. However, our estimates/valuation reflect only very modest expansion in this format for now. Net, the SFS growth algorithm should generate ~13% EBITDA growth and ~17% EPS growth through FY19.”

Smart & Final Stores closed on Friday at $14.75.

Posted-In: Deutsche Bank Karen ShortAnalyst Color Initiation Analyst Ratings