UPDATE: Piper Jaffray Lowers Monro Muffler Brake's PT

According to a research report published this morning, Piper Jaffray has lowered Monro Muffler Brake's MNRO PT from $40 to $35. In the report, Piper Jaffray said, "The favorable long-term growth story on MNRO remains intact, but the company appears caught in an air pocket right now. Industry headwinds are pressuring both sales and gross margin. While this dynamic is creating more acquisition opportunities the acquisitions aren't likely to become noticeably accretive until next year. Separately, F13 EPS was well below expectations but seems to factor in healthy improvement in 2H. All in, we remain on the sidelines until shares at least reach the historical FTM EPS multiple of 18x. Our new $35 PT is based on 18x F14 EPS of $1.96 - we lowered our multiple assumption from 20x to 18x to reflect challenging industry headwinds." Piper Jaffray maintains its Neutral rating on Monro Muffler Brake, which closed yesterday at $33.87.