UPDATE: Miller Tabak + Co. Upgrades Dunkin Brands Group to Buy, Raises PT Ahead of Company Earnings Release

In a report published Monday, Miller Tabak + Co. analyst Stephen Anderson upgraded the rating on Dunkin Brands Group DNKN from Hold to Buy, and raised the price target from $46.00 to $53.00. In the report, Miller Tabak + Co. noted, “We upgrade Dunkin' Brands (DNKN) to a Buy rating (from Hold) and raise our price target to $53 (from $46) ahead of the company's earnings release on October 24 as we expect three key top-line drivers to support EPS growth of at least 20% through 2015: (1) sustained unit growth at least at the high end of management estimates; (2) the rollout of an expanded ‘DDPerks' program that we anticipate will lift traffic; (3) a remodeling program that will think will provide a more substantial lift to EPS in the next two years; and now (4) incremental point-of-sale opportunities. We also think a fifth factor—accelerated expansion of the Dunkin' Donuts brand overseas—will support our top-line growth thesis, particularly in China where we think Dunkin' can gain market share from weakened rivals such as KFC (owned by YUM). Our revised $53 price target reflects forward valuations that use 2015 as our base valuation year, a resumption of share buybacks, and a sum-of-parts analysis that incorporates continued growth in franchise income both in the U.S. and overseas.” Dunkin Brands Group closed on Friday at $45.68.