Chefs’ Warehouse Receives New Coverage from Analysts at BMO Capital Markets (CHEF)
Investment analysts at BMO Capital Markets assumed coverage on shares of Chefs’ Warehouse (NASDAQ:CHEF) in a note issued to investors on Friday. The firm set a “hold” rating and a $17.00 price target on the stock. BMO Capital Markets’ target price indicates a potential downside of 1.56% from the stock’s previous close.
The analysts wrote, “CHEF reported adj. EPS of $0.18 that was below our $0.23 estimate and $0.21 Consensus. The miss was driven by lower gross margins and higher operating expenses as CHEF reported impressive revenue growth – organic growth increased +4.6% overall and was 10%+ in the southern and western regions. Gross margins were hurt by negative mix shift at Allen Bros. and the inability to pass on high levels of inflation (+5.4%), and operating expenses were pressured by investments made to support future growth. “CHEF is building the infrastructure to support a company that generates $1+ billion in revenues. In the near-term, until CHEF approaches that size, CHEF will probably generate limited flow-through despite the company’s impressive top line growth. Unfortunately, there is limited visibility as to when CHEF will achieve $1 billion in sales – it could be FY15 with the right acquisitions, but acquisitions are impossible to predict. As a result, we remain at Hold.”
Separately, analysts at Zacks upgraded shares of Chefs’ Warehouse from an “underperform” rating to a “neutral” rating in a research note on Tuesday, May 27th. They now have a $18.70 price target on the stock. Six equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $22.54.
Chefs’ Warehouse (NASDAQ:CHEF) traded down 0.40% on Friday, hitting $17.50. 37,108 shares of the company’s stock traded hands. Chefs’ Warehouse has a 1-year low of $16.87 and a 1-year high of $29.99. The stock’s 50-day moving average is $18.85 and its 200-day moving average is $20.81. The company has a market cap of $438.2 million and a price-to-earnings ratio of 26.54.
Chefs’ Warehouse (NASDAQ:CHEF) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by $0.03. The company had revenue of $213.10 million for the quarter, compared to the consensus estimate of $205.87 million. During the same quarter in the previous year, the company posted $0.26 earnings per share. The company’s revenue for the quarter was up 25.2% on a year-over-year basis. On average, analysts predict that Chefs’ Warehouse will post $0.67 earnings per share for the current fiscal year.
The Chefs’ Warehouse, Inc, formerly Chefs’ Warehouse Holdings, LLC, is a distributor of specialty food products in the United States.
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