UPDATE: Crowell Weedon Initiates BJ's Restaurants with Buy, $55 PT on Execution and Growth Potential

Crowell Weedon initiates its coverage on BJ's Restaurants

with a Buy rating and a price target of $55. Crowell Weedon comments, "We are basing our recommendation for purchase on the company's excellent operating history and future growth potential. We believe the opportunity exists for the company to substantially expand its current store base. Management believes that current markets could support at least 100 additional units and the long term nationwide potential could be in excess of 400 total locations. Based on current unit development economics, the company can comfortably expand its store base at annual rate of 12%-14%. Combined with annual same store sales gains of approximately 3% and expense leverage from future economies of scale, annual E.P.S. growth should be at least 19%. Our $55 price target is based on applying a P/E of two times growth to expected earnings over the next twelve months." BJRI closed at $40.94 on Tuesday.