Why Krispy Kreme Stock Was Sinking This Week
It's hard to argue that Krispy Kreme (NASDAQ: DNUT) doesn't sell tasty treats that consumers love. It's a bit more of a stretch, however, to convince investors that the donut slinger's stock is an attractive investment. On the back of a bearish new analysis, Krispy Kreme's share price was tumbling by 14% week-to-date as of Thursday night, according to data compiled by S&P Global Market Intelligence.
Monday morning, before market open, JPMorgan Chase's Rahul Krotthapalli set the tone for the subsequent trading days with said analysis. In it, he made a fairly deep cut to his price target, reducing it to $8 per share from his preceding $13. Although he maintained his overweight (i.e., buy) recommendation, that change was relatively dramatic.
According to reports, Krotthapalli's new take is based on his growing doubts that Krispy Kreme can effectively execute its "delivered fresh daily" strategy (the company aims to concentrate on large wholesale accounts for big restaurant chains and retail outlets).
Source Fool.com
JPMorgan Chase & Co. Stock
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