Shares of Blue Apron may finally see a light at the end of the tunnel. The stock had been struggling this month after Amazon announced that it would launch its own subscription-box meal kits. Shares had fallen 35% since June 29th until July 21st.
Several positive ratings from Wall Street analysts helped the stock head higher on Monday. Shares of the stock were up 9% in trading before the morning bell. According to Bloomberg, the meal-kit delivery service received 11 new recommendations and of them, seven were “buy” or “outperform” ratings and four were “equal weight.”
RBC Capital Markets analyst Mark Mahaney commented, “Blue Apron is the leading player in the nascent meal-kit delivery market and addressing a large, multi-billion dollar market.”
According to Mahaney, theres a big market opportunity for Blue Apron, despite Amazon’s involvement in the online grocery arena.
SunTrust analyst Youssef Squali remarked, “There are a number of instances where the worst fears from the threat of Amazon’s potential entry into a vertical have failed to materialize,” Squali said. “As an example, Amazon’s entry into photo books (through a tie-up with District Photo) last year failed to have a noticeable impact on Shutterfly, a category leader in personalized print.”
Disclaimer: We have no position in Blue Apron Holdings, Inc. (APRN) and have not been compensated for this article.