Deutsche Bank Maintains Buy On Smart And Final Stores, Sees 17% Upside


In a research report issued today, Deutsche Bank analyst Karen Short maintained a Buy rating on Smart and Final Stores (NYSE:SFS) with a price target of $17.00, which represents a potential upside of 17% from where the stock is currently trading.

Short observed, “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. “

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Karen Short has a total average return of 3.8% and a 57.6% success rate. Short is ranked #1321 out of 3355 analysts.

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