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Blue Apron jumps on buy rating from Guggenheim

  • The meal kit delivery service leads the industry subcategory.
  • Guggenheim released a note Monday estimating 25 percent growth in the sector.
  • Blue Apron was trading up at around $5.34 by start of trading Monday.

Shares in meal kit delivery service Blue Apron rose 3 percent Monday after an upgraded 'buy' rating from Guggenheim.

Blue Apron leads the meal kit delivery service sector, which the rating firm estimates will grow at a rate of 25 percent to $10 billion in the next 3 years, according to a note released Monday.

Blue Apron controls approximately 20 percent of the market share for the sector, the note said.

"Given their proof of concept and evolving management strategy, we think they can effectively compete and sustain the brand's leadership position," Guggenheim said.

Before the open Monday shares of Blue Apron were trading around $5.34.