Fresh Market Inc.'s stock dropped 1.9% in premarket trade Monday, putting it on track to open at a 15-month low, after the specialty grocer was downgraded at BMO Capital Markets, which cited concerns over negative sales comparisons following price declines in several key categories, such as produce, dairy and seafood. Analyst Kelly Bania cut her rating market perform, after being at outperform since October 2013, and slashed her stock price target to $28 from $44. "We believe that relative to competitors, [Fresh Market] lacks in its ability to react quickly with promotions/price investments, which is necessary to drive volume in a deflationary environment, leaving it exposed to the risk of negative comps in coming quarters," Bania wrote in a note to clients. The stock had slumped 28% year to date through Friday, while the S&P 500 had gained 1.6%.
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