UPDATE: Morgan Stanley Initiates Coverage On The Fresh Market

In a note dated June 24, Morgan Stanley analyst Vincent Sinisi initiated coverage on The Fresh Market (NASDAQ: TFM) with an Underweight rating and a $30 price target.

Sinisi began the note by calling out The Fresh Market for not effectively marketing itself as having superior quality perishables. To support this, he cited an AlphaWise survey that concluded consumers do not associate The Fresh Market with high quality when compared to other specialty grocers.

In terms of growth, Sinisi is estimating 11-12 percent EPS growth and said, "It is too early too be more constructive."

Moreover, as The Fresh Market is not an organic pure play, Sinisi is concerned it may not benefit as well as peers from growth in this segment.