Performance of eDiets (NASDAQ:DIET) Dependent on Meal Delivery Business

Although they'll take time to profitably build out their business, Canaccord Genuity said they do like the development of eDiets (NASDAQ:DIET) business during a typically soft seasonal period.

Maintaining their "Hold" rating on the company, they see progress related to how long it takes to get their meal delivery business built out.

"We maintain our HOLD rating but are encouraged by the business development into a seasonally softer period thus far in Q4. The business model appears to be coming together and the question will become how rapidly the meal delivery business can build...Raising F2011E revenue to $32M from $30M, while increasing our loss per share estimate to ($0.15) from ($0.11)," said Canaccord.

The company traded at $0.68 Friday. Canaccord has a price target of $1 on them.