Blue Buffalo Receives a Buy from D.A. Davidson

By Austin Angelo

D.A. Davidson analyst Eric Gottlieb reiterated a Buy rating on Blue Buffalo (NASDAQ: BUFF) today and set a price target of $29. The company’s shares opened today at $24.20.

Gottlieb observed:

“We anticipate gross margin to be 43.7%, a 200bp increase from the year before, however, higher SG&A knocks the operating margin to a 30bp decline to 21.9%.”

According to, Gottlieb is a 4-star analyst with an average return of 6.8% and a 51.7% success rate. Gottlieb covers the Consumer Goods sector, focusing on stocks such as Lancaster Colony Corp., Amplify Snack Brands, and Omega Protein Corp.

Currently, the analyst consensus on Blue Buffalo is Strong Buy and the average price target is $30.33, representing a 25.3% upside.

In a report issued on October 24, Susquehanna also reiterated a Buy rating on the stock.

Blue Buffalo’s market cap is currently $4.71B and has a P/E ratio of 42.84. The company has a book value ratio of 54.8920.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock.

Blue Buffalo Pet Products, Inc. is a pet food company in the United States. The company operates through its wholly-owned operating subsidiary, Blue Buffalo Company, Ltd. and its other subsidiaries. It engages in selling dog and cat food made with whole meats, fruits and vegetables, and other natural ingredients. The company operates pet foods into different segments: Wholesome Natural, Engineered, Private Label and Therapeutic market. Blue Buffalo Pet Products was founded by William Bishop, William W. Bishop Jr. and Christopher T. Bishop in 2002 and is headquartered in Wilton, CT.