Wunderlich Securities Sees Good Things Ahead For Panera Bread

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $205.00 price target on Panera Bread PNRA. In the report, Wunderlich Securities noted, “While we remain confident in Panera Bread (PNRA) management's sales-building plan for 2014 and 2015, with over 50% of system cafes in the Upper Midwest and Northeast, we believe frigid winter winds have likely chilled recent Panera Bread sales and, accordingly, we have factored in more cautious Q413 and Q114 SSS projections. "However, as more seasonal weather patterns develop, we project SSS to improve materially, supported by recent Q413 throughput gains along with programs to improve price perception, consumer convenience and accessibility, supported by increased advertising weights. As SSS accelerate through 2014 and into 2015, we believe margins and EPS growth will ultimately follow. Recently trading at 20.3x 2015 EPS vs. its high-growth peers at 23.7x, we reit. our Buy rating.” Panera Bread closed on Friday at $177.88.