UPDATE: Wunderlich Securities Initiates Coverage on BJ's Restaurants with Hold Rating, $42 PT on Limited Upside

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

with a Hold rating and $42.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of BJ's Restaurants, Inc. (BJRI) with a Hold rating and a $42.00 price target. We believe BJRI shares could be range-bound in the near term as multiple expansion and material EPS upside appear limited, with its shares fairly valued at recent levels (30.9x forward 12-month EPS vs. 5-year average of 30.3x). While we believe its high-energy, "casual-plus" quality concept appears well positioned for longer-term success, recent soft sales trends leave our EPS projections vulnerable to downward revision, adding risk to BJRI's share price.” BJ's Restaurants closed on Monday at $37.19.