UPDATE: Bank of America Reduces PO to $10 on Country Style Cooking Restaurant Chain on Disappointing Quarter

Bank of America reduces its price objective on Country Style Cooking Restaurant Chain

from $11.50 to $10. Bank of America comments, "CCSC 1Q12 GAAP/non-GAAP NPAT rose 55%/57%, respectively, to RMB18.3mn/RMB22.8mn, mainly due to non-operational income and a one-off tax reversal. Stripping away option expense and tax reversal, adjusted NPAT declined 66% to RMB5mn. We raise GAAP 2012 estimates 32% by factoring tax reversal, while our core earnings remain unchanged. We also lower our PO (from US$11.50) to US$10 (24x 2013E PE) given a low visibility on the recovery trend." CCSC closed at $8.45 on Thursday.