UPDATE: JPMorgan Upgrades Bloomin' Brands
In a report published Tuesday, JPMorgan analyst Amod Gautam upgraded Bloomin' Brands (NASDAQ: BLMN) to Overweight from Neutral, raising its price target to $26.00 from $25.00.
According to the report, the analyst's Dec. 14 price target of $26.00 is based on ~17x multiple on revised CP15 EPS of $1.50.
“The company was represented by CEO Liz Smith, CFO David Deno, Chief Strategy/Market Intelligence Officer Roger Chacko, VP of IR Chris Meyer, as well as culinary leadership executing an impressive cross-brand product tasting,” the report noted. “The tone of the meeting was positive with Bloomin' comp drivers, major margin initiatives, and now recently-consolidated Brazil JV business (with historical data released in an 8-K this past Friday) helping the company generate 17% average annual EPS growth in F14/F15 through an understandably cautious outlook on the domestic sales environment. In our revised model we now incorporate the company's change from a calendar fiscal year to 52-53 week fiscal year, as well as the consolidation of the now 90%-owned Brazil JV. Since peaking near $27 on November 25, BLMN is down nearly 20% vs. the S&P up 2% and other casual diners in our coverage down an average 5%. Based on this multiple compression, matched with increased confidence in the margin expansion story for BLMN over the next 12 months, we are upgrading the stock from Neutral to Overweight.”
BLMN closed Friday at $21.94.
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