UPDATE: Piper Jaffray Downgrades Panera Bread to Underweight Following Management Transitions
Piper Jaffray reduced its rating on Panera Bread (NASDAQ: PNRA) from Overweight to Underweight and lowered its price target from $165 to $129.
Piper Jaffray noted, "Based on our "human capital trumps financial capital" thesis we recognize a high degree of execution risks until executive positions are filled. We recognize this thesis may be construed at the very best as "contrarian" given the company retains a strong balance sheet (ie $200+ million cash), positive samestore sales trends and a healthy level of unit growth. In the short-term we do very strongly believe our FY12 estimates remain achievable. Looking forward however, we have reduced confidence (which resulted in our lowered projections) based on a lack of relative upside to mix shift, pending assessment of comp volatility based on National TV advertising and again...overall strategic and tactical execution risks."
Panera Bread closed at $147.31 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.