UPDATE: Jefferies Downgrades Red Robin Gourmet Burgers to Hold on Fair Valuation

Jefferies reduces its rating on Red Robin Gourmet Burgers

from Buy to Hold, but raises its price target from $26 to $32. Jefferies notes, "We think ests & valuation fairly reflect improving new store economics & visibility of EPS upside in '12 as cost efficiencies materialize & offset a choppier sales environment. However, SSS remain the key driver behind LT EPS growth & valuations, and although we see a number of potential catalysts for '13, we currently have limited visibility of SSS momentum. We rate RRGB Hold w/ $32 PT; intro 12/13 EPS of $1.88/$2.13." RRGB closed at $31.69 on Thursday.