Shares of Blue Apron (APRN) - Get Blue Apron Holdings, Inc. Class A Report were climbing over 2% during mid-morning trading on Monday after Guggenheim initiated coverage of the meal-kit delivery service's stock with a "Buy" rating and a $9 price target.

The bullish call from Guggenheim analyst Matt DiFrisco is predicated on Blue Apron's leadership position within the meal-kit delivery space. The company currently maintains approximately 20% of the market share for the sector, he noted.

"Given their proof of concept and evolving management strategy, we think they can effectively compete and sustain the brand's leadership position," he wrote.

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DiFrisco projects that the meal-service space will grow at a 25% rate to $10 billion over the next three years. He anticipates Blue Apron sales to increase "conservatively" to about $1.6 billion in 2020, from $800 million in 2016. 

He estimates that Blue Apron will have roughly $260 million in capital by the end of the third-quarter of 2017, contending that will be sufficient enough for the company to meet funding requirements over the near-term. 

Shares of Blue Apron have sunk over 47% since first going public on June 30.

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