UPDATE: Piper Jaffray Raises PT on The Cheesecake Factory Following Teen Survey

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In a report published Wednesday, Piper Jaffray analyst Nicole Miller Regan reiterated an Overweight rating on The Cheesecake Factory
CAKE
, and raised the price target from $37.00 to $42.00. In the report, Miller Regan noted, “The Cheesecake Factory's brand equity continues to resonate with teens as the company maintained its position as the most preferred restaurant brand within the American cuisine segment among upper income teens during our Spring 2013 Taking Stock With Teens survey. Our new target is based on 9x our FY13 EV/EBITDA (no debt, $83.5 mil. cash and vs. ~17x FY13 EPS prior), in-line with peer multiples, and reflecting a premium to CAKE's current multiple based our belief that as the company's business model evolves into a global growth portfolio with store growth domestically, asset light growth abroad, and a compelling CPG opportunity through third party cheesecake sales, CAKE will generate increasing levels of cash. Therefore we believe an EV/EBITDA multiple is a more appropriate methodology by which to value the company.” The Cheesecake Factory closed on Tuesday at $37.35.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsPiper Jaffray
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