UPDATE: Morgan Stanley Initiates Coverage On United Natural Foods

In a research report released Tuesday, Morgan Stanley analyst Vincent Sinisi initiates coverage on United Natural Foods (NASDAQ: UNFI) with an Overweight rating and $80 price target.

Sinisi claims United Natural Foods is a direct play on the secular growth of organic/natural foods.

The Morgan Stanley analyst claims Whole Foods Market contributed 13 percent to United Natural Foods and is projected to grow more with a 16 percent EPS CAGR estimate for 2013 to 2016. Risk/reward skewness for United Natural Foods is positive on Morgan Stanley's projection.

Morgan Stanley's price target of $80 is given by the firms 2015 EPS projection of $3.03 ($0.16 above consensus projections) giving a 2015 P/E multiple of 26x.

Shares of United Natural Foods are up by 1.35 percent.