Oppenheimer Raising Price Target on Einstein Noah Restaurant Group (BAGL)

Oppenheimer is out with its report on Einstein Noah Restaurant Group BAGL, raising its price target from $15 to $18.

In the report, Oppenheimer writes "4Q EPS were in line with our estimates; however, SSS came in slightly below our expectations. Management indicated that the Barista initiative is providing a significant lift to SSS. aristas should be in place system-wide by the end of 2011."

Oppenheimer later adds, "Looking forward, commodity headwinds should be manageable considering wheat is merely 10% of COGS and 100% of its wheat needs are locked for 1H11. Coffee is locked for the full year. Management continues to expect 2-3% of commodity inflation, but foresees the ability to offset with pricing."

Oppenheimer maintains its Overweight rating.

Shares of BAGL opened Friday at $15.70.