Benchmark Maintains Buy, $20 Target on The Pantry

Benchmark reiterates its Buy rating and $20 target price on The Pantry

as it lowers FY estimates following company's Q4 reporting. Benchmark says, “We lowered our 2012 EPS estimate to $0.83, from $1.23, on a more conservative revenue and GM assumptions. Our 2011E EPS is based on 7.8% revenue decline, primarily driven by a decrease in the retail price per gallon. We expect a 0.3% decrease in comp gallons sold and 5% decrease in the average price per gallon. We expect merchandise comp decline of 0.6%. We expect revenues to be negatively impacted by closing 40 stores, with very few openings.” PTRY closed at $10.71 per share on Tuesday.