UPDATE: Jefferies Downgrades Bravo Brio Restaurant Group to Hold Awaiting Better Visibility
In a report published Tuesday, Jefferies analyst Andy Barish downgraded the rating on Bravo Brio Restaurant Group (NASDAQ: BBRG) from Buy to Hold, but reiterated the $17.00 price target.
In the report, Jefferies noted, “Downgrading to Hold until we gain better visibility on earnings growth acceleration back toward 15-20%. We do not see any issues with BBRG's long-term unit growth opportunity, and think that new store openings remain in line with targeted expectations. However, both Bravo & Brio have suffered from site-specific issues over the past twelve months and have become increasingly sensitive to competitive (Italian) & macro trends. SSS & traffic have turned negative, trending much more in line with broad casual dining than other upscale concepts, and margins have eroded significantly. Consequently, the company has pulled back on unit growth to focus on existing stores, with the intent of ramping back toward 10% next year.”
Bravo Brio Restaurant Group closed on Monday at $15.75.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.