UPDATE: Bank of America Initiates Texas Roadhouse at Buy on Appealing Growth Attributes

In a report published Monday, Bank of America analyst Andrew M. Charles initiated coverage on Texas Roadhouse TXRH with a Buy rating and $28.00 price target.

In the report, Bank of America noted, “The company has appealing growth attributes, including a high single digit unit expansion rate, an impressive same store sales track record, and a rising return on invested capital. TXRH's growth is organic as opposed to financially driven and our EPS estimates of $1.19 for 2013 and $1.36 for 2014 are above consensus. Our $28 price objective reflects a P/E of 20-21x our 2014 estimate which equates to a 1.4x-1.5x PE to growth (PEG) rate.”

Texas Roadhouse closed on Friday at $24.44.