Shares in meal kit delivery service 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.