Natural Grocers Receives a Hold from Oppenheimer

Oppenheimer analyst Rupesh Parikh maintained a Hold rating on Natural Grocers (NYSE: NGVC) yesterday. The company’s shares closed yesterday at $6.90.

Parikh commented:

“We overall look favorably upon the better than expected Q2 results reported by NGVC earlier this evening. Comps increased 7.1%, well ahead of Street forecasts of +6.0%. Two-year comp trends improved 1.3% pts, to 5.4% from 4.1% in Q1. Management also delivered an improvement in sequential gross margins, down 120 bps vs. the 210 bps decline in Q1. As we look forward, we are encouraged by the improving top- line trends at NGVC and improving free cash generation. We await signs of margin stabilization before becoming more constructive on shares. We are slightly lifting our 2018 and 2019 forecasts to primarily reflect today’s results, but still assume a muted profit outlook going forward.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.3% and a 60.5% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.

Natural Grocers has an analyst consensus of Moderate Sell, with a price target consensus of $7.

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Based on Natural Grocers’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $202 million and quarterly net profit of $5.18 million. In comparison, last year the company earned revenue of $192 million and had a net profit of $3 million.

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Natural Grocers by Vitamin Cottage, Inc. operates natural & organic grocery and dietary supplement stores. It offers the following product categories, natural & organic food, dietary supplements, natural body care, household and pet care products. The company was founded by Margaret Isely and Henry Philip Isely in 1955 and is headquartered in Lakewood, CO.