UPDATE: Oppenheimer Raises PT on Panera Bread to $190
Oppenheimer increases its price target from $175 to $190 on Outperform-rated Panera Bread (NASDAQ: PNRA) on near-term upside and an improving ROIC profile.
Oppenheimer says, "We performed a deep-dive unit penetration analysis (see page 2) which suggests PNRA could fluently double the footprint with 50% cash-return builds. This could clear a long runway for improving ROIC, a metric that has doubled since 2007 to 22%. Near term, we believe 2012 expectations remain tamed and beatable. Sources of EPS upside (traffic, margins and cash usage) are becoming more widely understood by investors, but the model is positioned to deliver outsized beats relative to many casual diners where expectations appear stretched."
PNRA closed at $169.99 a share on Friday.
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