Jefferies Introduces EPS Estimates on Bravo Brio Restaurant Group (BBRG)

Jefferies introduces its EPS estimates on Bravo Brio Restaurant Group BBRG after initiating coverage on BBRG. In a note to clients, Jefferies writes, "We are introducing EPS estimates of $0.74, $0.80, and $0.98, respectively, implying growth of 8% and 22% over the next two years. The company recently reported 3Q operating EPS of $0.15 vs. $0.10 (both reflecting pro-forma adjustments) or an increase of about 50%. We find the long-term growth model appealing at BBRG as it does not depend on any one particular driver. The company should grow units at 10%, same-store sales +1-2%, enjoy some margin/G&A leverage, and use free cash flow to paydown debt and reduce interest expense. This should result in a 17.5%-20% longer-term EPS growth rate." BBRG is trading at $17.70.