new coverage rates Goodfood "outperform"
Globe says new coverage rates Goodfood "outperform"
2020-04-03 07:40 ET - In the News
The Globe and Mail reports in its Friday, April 3, edition that Raymond James analyst Michael Glen began coverage on Goodfood Market with an "outperform" rating on Thursday. The Globe's David Leeder writes in the Eye On Equities column that Mr. Glen set a share target of $4.70, exceeding the current average on the Street of $4.13. Mr. Glen says Goodfood being "a benefactor of the stay-at-home trade." He says in a note: "In particular for Goodfood, while they have yet to specifically quantify the benefits to revenue and subscriber count, we have seen some updates which clearly indicate to us that they are seeing an uptick in results. This includes the announcement regarding the hiring of over 500 employees to support operations and raises. From our perspective, we believe that we stand to see at least 2-3 quarters of momentum in results from the company. Importantly, given a meaningful increase in customer demand and word-of-mouth, we would be under the impression that the company's associated marketing expense and related subscriber acquisition cost stand to materially reduce in coming quarters. We will look to get more information on this dynamic during the company's upcoming earnings report on April 8."