BGB Maintains Buy on Denny's (DENN)

BGB is out with its report today on Denny's (NASDAQ: DENN), maintaining Buy and a $5 PT.

In a note to clients, BGB writes, "While DENN must improve its recent anemic same-store sales trends, we believe that there is some room for optimism on this front. Meanwhile, DENN shares, priced at slightly below 9x our FY11 free cash flow estimate, continue to be attractive, in our opinion, particularly for patient investors who, we believe, will be rewarded over the long term as new management increasingly realizes the potential of the Denny's brand. We continue to see good value in DENN shares, despite their strong recent performance. We are maintaining our $5 price target, which is 10.5x our FY11 free cash flow estimate, but we are open to raising our target if same-store sales trends begin to show improvement."

At the time of posting, shares of DENN were trading pre-market at $4.03, down 2.18% from Friday's close.