APRN - Blue Apron stock surges after Benchmark turns bullish

Blue Apron ( NYSE: APRN ) shares soared in Thursday’s premarket hours after Benchmark analyst Daniel Kurnos advised the turnaround story for the company is “simply not getting enough credit.”

Shares of the New York-based direct to consumer platform pushed over 10% higher in early trading, recouping losses marked after a deep drop in Thursday’s trading. According to Kurnos, the stock could surge much higher as well, assigning a $10 price target to shares alongside a new “Buy” rating. Such a level would near the 52-week high for the stock, nearly 300% above Thursday’s closing price.

“We see a sharp recovery in consumer reception coalescing around a product backed by one of the most recognized brand names in the industry and, with the ability to finally spend some marketing dollars, we see the path to cash flow positive as eminently achievable in the next 18 months,” Kurnos advised. “Throw in vertical expansion and scale benefits, and we think if management continues to get the recipe right, APRN shares could really start cooking.”

To be sure, Kurnos warned that the company’s cash burning habits in a rising rate environment is an impediment to growth. This concern is only highlighted further in a rising rate environment and puts a heavy onus on management to execute sans major errors. Still, with the stock down about 75% from its 2021 peak, Kurnos advised the name is “worth a bite.”

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