By Sam Boughedda
A Benchmark Company analyst initiated coverage of Blue Apron Holdings Inc (NYSE:APRN) with a Buy rating and a $10 per share price target on Thursday.
He told investors in a note that even following a modest rebound from a new low, Blue Apron shares are trading at a 1/3 of their 52-week high, "more than pricing in the economic clouds" they see forming.
"Even taking a conservative approach to our forecast with regards to new customer and sales growth, we still believe shares trade at just 0.2x EV/revenue for a turnaround story that we think simply is not getting enough credit in the marketplace," said the analyst.
Blue Apron shares are down 50.8% this year and are currently flat during Thursday's session.
"We see a sharp recovery in consumer reception coalescing around a product backed by one of the most recognized brand names in the industry and, with the ability to finally spend some marketing dollars, we see the path to cash flow positive as eminently achievable in the next 18 months. Throw in vertical expansion and scale benefits, and we think if management continues to get the recipe right, APRN shares could really start cooking," concluded the analyst.