Blue Apron Holdings, Inc. (NYSE:APRN), (HLFFF) – Here’s Why Blue Apron Is Trading Higher Today

  • Andrew Left’s Citron Research issued a lengthy research report on Blue Apron Holdings Inc (NYSE: APRN) with a $40 price target. 
  • The price target implies a 443% upside to the January 19 closing price of $7.36.
  • “There are hundreds of meal kit reviews online, and Blue Apron is always at the top of the list on food quality, price, and ease of use,” Citron said. 
  • Citron acknowledges that HelloFresh SE (OTC: HLFFF) has become the dominant brand in meal kits but says that is reflected in the stock having a greater than $10 billion valuation versus Blue Apron at $160 million. 
  • Yet, Blue Apron has superior unit economics compared to HelloFresh with 50% higher contribution margins, Citron argues. 
  • On an enterprise value per customer basis, Blue Apron trades at $457 versus HelloFresh at $1,499, it added. 
  • Citron believes that at Blue Apron’s current valuation, it has “zero fundamental downside” and could be liquidated “for a minimum” of $27 a share. 
  • Citron sees one of two scenarios to play out for Blue Apron: The company executes on its turnaround with stock at least $30 or is acquired at a “significant premium” by HelloFresh or a strategic buyer looking to expand into the meal kit category.
  • Citron believes the company most likely to acquire Blue Apron is Peloton Interactive Inc (NASDAQ: PTON).
  • Price Action: APRN shares traded higher by 18% at $8.69 on the last check Thursday.

Latest Ratings for APRN

Date Firm Action From To
Jan 2021 Morgan Stanley Maintains Equal-Weight
Oct 2020 Canaccord Genuity Maintains Buy
Jul 2020 Canaccord Genuity Upgrades Hold Buy

View More Analyst Ratings for APRN

View the Latest Analyst Ratings

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