The higher price target comes after the Greensboro, NC-based specialty grocery retailer agreed to be acquired by private equity firm Apollo Global Management (APO) yesterday.
"We believe this is a good outcome for TFM...as TFM can now pursue its turnaround strategy in a private setting. We continue to see longer-term potential in the TFM story given its compelling unit economics and not-so-organic niche of providing high-quality fresh foods in a convenient/high-service setting," BMO Capital said in an analyst note.
Fresh Market has the opportunity to significantly improve its ability to react more quickly with promotions and price and engage customers in today's rapidly changing food retail and volatile food deflation environments, the firm noted.
Apollo has been active in the food retail space, with prior involvements in Sprouts Farmers Market (SFM) and Smart & Final Stores (SFS) in recent years.
Shares of Fresh Market are lower by 0.11% to $28.36 on Tuesday morning.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures.
As a counter to these strengths, the team also finds weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TFM