UPDATE: Wunderlich Securities Initiates Coverage on Panera Bread Co. with Hold Rating, $200 PT on Strong EPS Growth Outlook

In a report published Tuesday, Wunderlich Securities analyst Robert Derrington initiated coverage on

with a Hold rating and $200.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Panera Bread Company (PNRA) with a Hold rating and a 12-month price target of $200, 7% above recent levels. While we believe management continues to distinguish and elevate its Panera Bread table for stronger trends to come, we believe encroaching competition and investment spending for future initiatives could limit upside to our projections, leading to our more cautious initial rating. Management's adroit evolution of its consumer-friendly bakery café concept has established a high industry standard to which few competitors compare. While management's business model continues to target longer-term EPS growth in the 15%-20% range, over the past 5 years and, despite the Great Recession, annual EPS growth exceeded that range, averaging almost 27% annually.” Panera Bread Co. closed on Monday at $186.67.