© Reuters. UBS sees Chefs’ Warehouse (CHEF) as a market leader, starts at buy
UBS initiated coverage of The Chefs’ Warehouse, Inc. (NASDAQ:) at Buy with a $37 price target in a note to clients on Monday.
UBS analysts told investors that despite some near-term disruption for the stock, the company has an “attractive business model.”
They explained that the company’s “heavy focus on service, its wide selection of hard-to-find specialty & center of the plate items, & its broad footprint” have helped it become “a market leader for high-end dining establishments.”
“CHEF has also been finding ways to boost wallet share with existing customers, including scaling up in newer categories such as produce (its recent Hardie’s & Greenleaf acquisitions have contributed to this),” the analysts added.
They noted that while near-term deflationary and economic concerns are weighing on the stock, they expect them to moderate over the next few quarters.
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