Will Blue Apron Get Eaten Alive When It Reports Thursday Morning?

August 9, 2017 by Chris Lange

Blue Apron Holdings Inc. (NYSE: APRN) is scheduled to release its second-quarter financial results before the markets open on Thursday — its first earnings report as a public company. The food prep and delivery service provider has been under fire since it first came public, but a positive showing from this earnings report could alleviate some of the concerns.

Since the firm came public, the stock has dropped nearly 42%.

The consensus estimates from Thomson Reuters call for a net loss of $0.30 per share and $235.81 million in revenue. The most bullish estimates from analysts are a net loss of $0.15 per share and $236.6 million in revenue, while the biggest bear sees a net loss of $0.47 per share and $234.4 million in revenue.

Much of the pressure being felt in Blue Apron stock is from Amazon’s newest trademark application on a phrase that refers to prepared food kits. The e-commerce giant noted that the phrase covers prepared food kits ready for cooking and assembly as a meal.

Amazon’s massive customer base, including some 85 million Amazon Prime subscribers, could punch a serious hole in the plans of Blue Apron and other startups seeking to play in the meal delivery business.

During the quiet period, one analyst came forward with a Sell rating for the stock. Northcoast Research initiated coverage with that Sell rating and a $2 price target. Northcoast Research may not be a household name to investors, but analysts from the underwriting syndicate are still forced to remain mum during the imposed quiet period. Still, this is just one more bruise for Blue Apron’s bulls, and it came on the heels of a day when the stock finally managed to rally.

A few other analysts have weighed in on Blue Apron:

  • RBC has a Buy rating with a $10 price target.
  • Citigroup has a Buy rating with a $10 price target.
  • Raymond James has a Market Perform rating.
  • Oppenheimer has an Outperform rating with an $11 price target.
  • Morgan Stanley has an Equal Weight rating with a $7.50 price target.
  • Canaccord Genuity has a Buy rating with a $14 price target.
  • Needham has a Buy rating with a $10 price target.
  • William Blair has a Market Perform rating.
  • SunTrust Banks has a Buy rating with a $12 price target.
  • Stifel has a Buy rating with a $10 price target.
  • Barclays has an Equal Weight rating with a $7 price target.
  • Goldman Sachs has a Buy rating with an $11 price target.

Shares of Blue Apron were last seen at $5.84, with a consensus analyst price target of $9.50 and a post-IPO range of $5.51 to $13.29.

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