Meaningful Improvement In RUTH’s Q4 Performance
Analysts at Piper Jaffray maintain their "neutral" rating on Ruth's Hospitality Group (NASDAQ: RUTH), while reducing their estimates for the company. The target price for RUTH is set to $3.
Ruth's Hospitality Group has reported its Q4 operating earnings and revenues ahead of the estimates. “We believe the improving same-store sales results validate our thesis that the improvement in corporate travel/spending metrics is translating to improved sales within the fine-dining segment,” the analysts say.
RUTH has strengthened its balance sheet by raising approximately $50 million via a private placement and equity offering, the analysts say. Piper Jaffray has reduced its EPS estimate for FY10 from $0.34 to $0.24, to reflect the dilution related to these financial transactions.
