UPDATE: Miller Tabak Downgrades Panera Bread to Hold on Valuation

Miller Tabak reduced its rating on Panera Bread PNRA from Buy to Hold but raised its fair value estimate from $170 to $172. Miller Tabak noted, "We downgrade shares of Panera Bread (PNRA) to Hold (from Buy) as the stock surpassed our price target yesterday after rallying 28% since early summer. We still consider PNRA's top-line growth prospects one of the best in the industry, and contend a mix of judicious menu price increases and potential changes in the menu mix will support this top-line growth. … However, even considering PNRA's potential upside catalysts, we still must reflect the risk of rising commodity costs under PNRA's laddered grain purchase program in 2H13 and the potential for a concomitant deceleration in EPS and margin growth." Panera Bread closed at $172.81 on Monday.