UPDATE: KeyBanc Downgrades Bob Evans Farms to Hold, Removes PT

In a report published Friday, KeyBanc downgraded its rating on Bob Evans Farms BOBE from Buy to Hold, and removed its $50.00 price target. KeyBanc noted, “Downgrading Bob Evans Farms, Inc. (BOBE-NASDAQ) to HOLD from BUY. We continue to view BOBE's plan to reinvigorate Bob Evans Restaurants (BER) and grow BEF Foods division positively, but have less confidence that near-term performance will exceed investors' expectations. Our BUY thesis was the selling of Mimi's and continued growth of BEF Foods that would lead to upside to the FY14 EPS consensus estimate ($2.94 on January 3, 2013, but currently $2.77); however, the uncertainty of BEF Foods margin outlook causes us to recommend a HOLD, rather than buying at the current price.” Bob Evans Farms closed on Thursday at $44.27.