Jefferies Reiterates Buy on Ruth's Hospitality (RUTH)

Jefferies is out with its report on Ruth's Hospitality (NASDAQ: RUTH), reiterating Buy.

In a note to clients, Jefferies writes, "We recently spent time with RUTH senior management visiting with investors. We came away with a reinforced sense of the turnaround phase behind the company, and now pointing towards new growth initiatives. We find the stock attractively valued at about 6.5x 2011 EV/EBITDA, and believe that positive SSS momentum can offset the higher beef costs the company is seeing. We reiterate our Buy rating and $6 Target Price."

Shares of RUTH closed Tuesday at $5.02, up 0.40% from Monday's close.