UPDATE: Deutsche Bank Initiates Coverage on Susser Holdings Corporation with Hold Rating, $50 PT on Fair Valuation

In a report published Thursday, Deutsche Bank analyst Karen Short initiated coverage on

with a Hold rating and $50.00 price target. In the report, Deutsche Bank “We are initiating coverage of SUSS with a Hold rating and a $50 price target. Our price target values SUSS at a consolidated EV/EBITDA of 9.0x, and PE of 17.5x. We have a Hold on SUSS for 5 reasons: 1) while ROIC improved meaningfully from 1Q10 to 1Q12, recently ROIC has been declining and lumpy; 2) during the period of lumpy/declining ROIC, the EV/EBITDAR multiple has expanded; 3) relative valuation (EV/EBITDAR relative to ROIC) has also expanded over this period and now looks generous; 4) on relative valuation, SUSS is one of the more expensive names in our universe; and 5) SUSS currently ranks last in our Universe Rankings.” Susser Holdings Corporation closed on Wednesday at $53.87.