UPDATE: RBC Capital Markets Initiates Coverage on Noodles & Co. with Sector Perform Rating, $45 PT on Multiple Reasons to Feel Confident

In a report published Friday, RBC Capital Markets analyst David Palmer initiated coverage on Noodles & Co. (NASDAQ NDLS) with a Sector Perform rating and $45.00 price target. In the report, RBC Capital Markets noted, “We see many reasons to feel confident in long-term EPS growth of ~25%. These include: 1) solid unit economics across a variety of geographies, trade areas, and real-estate types; 2) a track record of consistent SSS growth; 3) a strong management team with experience at Chipotle, McDonald's and Yum Brands; 4) a highly differentiated concept; 5) a less protein-centric food basket; and 6) the possibility of more than a decade of double digit unit growth ahead.” Noodles & Co. closed on Thursday at $42.10.