UPDATE: Piper Jaffray Upgrades Red Robin Gourmet Burgers on Positive Outlook

In a report published Wednesday, Piper Jaffray analyst Nicole Miller Regan upgraded the rating on

from Underweight to Neutral, and raised the price target from $53.00 to $68.00. In the report, Piper Jaffray noted, “We are raising our estimates, rating, and price target on RRGB shares. As the company has executed against both its strategic and tactical initiatives to enhance the brand's relevancy with guests and deliver better-than-expected results our prior estimates and rating proved overly conservative. Despite volatile 3Q trends for the industry overall, we expect favorable updates during our upcoming proprietary Taking Stock With Teens survey and the company's November analyst day. Should the company be unable to maintain its positive same-store sales trends, maintain outperforming traffic trends, and/or continue delivering against its cost savings plans our revised outlook may prove optimistic. Our Neutral rating and new $68 PT are based on 25x our raised FY14 estimates (vs UW prior & $53 based on ~21x prior) which we believe is more reflective of the company's long-term growth profile.” Red Robin Gourmet Burgers closed on Tuesday at $68.18.