Market Overview

UPDATE: Jefferies Downgrades Panera Bread to Hold on Lack of Near-Term Visibility

Share:
Related PNRA
Wedbush's Top Restaurant Stock Picks Ahead Of Earnings
CNBC's Stock Pops & Drops From April 16
Chipotle Takes GMOs Off Menu, Still In Supply Chain (Investor's Business Daily)

In a report published Tuesday, Jefferies analyst Andy Barish downgraded the rating on Panera Bread Co. (NASDAQ: PNRA) from Buy to Hold, but reiterated the $195.00 price target.

In the report, Jefferies noted, “Longer term growth drivers appear fully intact, and continue to improve in many respects, but our near term EPS visibility is clouded by the prospect of reported traffic growth becoming incrementally impacted by throughput bottlenecks during peak hours, while incremental labor being added at the store-level to alleviate bottlenecks will weigh on margins. This operational issue came to light last month on the 2Q conference call, and although we believe the issue is fixable, we suspect many of the throughput initiatives will take at least a few quarters to remedy (adding additional physical capacity, implementing new production processes, reducing complexity in production system). We rate PNRA HOLD (from BUY) with a PT of $195 based on 24x our 2014 EPS or 11x EV/EBITDA.”

Panera Bread Co. closed on Monday at $173.66.

Latest Ratings for PNRA

DateFirmActionFromTo
Apr 2015Raymond JamesUpgradesUnderperformMarket Perform
Apr 2015BairdMaintainsOutperform
Apr 2015Cowen & CompanyInitiates Coverage onMarket Perform

View More Analyst Ratings for PNRA
View the Latest Analyst Ratings

Posted-In: Andy Barish JefferiesAnalyst Color Downgrades Analyst Ratings

 

Related Articles (PNRA)

Around the Web, We're Loving...