UPDATE: Canaccord Initiates Coverage On Zulily

Canaccord initiated a Buy rating and $45 price target on Zulily Inc ZU in a report issued Friday.

Analysts led by Michael Graham believed that "zulily is early with its unique value proposition to the affluent but value-conscious mom.  [The company] has turned shopping into a daily, serendipitous experience beginning promptly at 9:01 a.m., offering moms entertainment and shopping for non-mainstream fashion bargains."

Graham noted that vendors "get valuable exposure to their target customers with economics that are competitive with those from a conventional retailer" and that cohort analysis suggests "potential revenue upside."

Risks included customers regarding "zulily’s daily events as distracting; other flash-sale companies have faced difficulty scaling; zulily may not be able to source enough of the right products at the right times," according to Graham.

The $45 price target is "based on 40x our 2018 EPS estimate of $1.69, discounted to present at a rate of 10.4 percent."

Zulily Inc recently traded at $37.37, down 0.22 percent.