UPDATE: Bank of America Downgrades Burger King from Neutral to Underperform on a Lower EBITA Multiple

Bank of America Analyst Joseph Buckley downgraded Burger King

from Neutral to Underperform, while lowering his price target from $19.50 to $16.00. In the report, Buckley defended the rating saying "we expect BKW's valuation to range from low double digits to mid-teens on an EV/EBITDA basis depending on the potential for cash-driven catalysts and also based on operating fundamentals for the brand. We perceive little chance of cash driven catalysts for Burger King for the next 18-to-21 months. We are also concerned that U.S./Canada same store sales could struggle against difficult comparisons and against more aggressive competition from McDonald's and Wendy's. BKW shares have traded up nicely calendar year-to-date. " Burger King shares traded down 2.76 percent to $19.39 following the report.