Miller Tabek Downgrades Buffalo Wild Wings to Hold Following 23% Rally from Earnings

In a report published Monday, Miller Tabak + Co. senior analyst Stephen Anderson downgraded

from Buy to Hold and raised the fair value estimate from $148.00 to $155.00. Anderson noted that Buffalo Wild Wings had a strong start to 2014 despite harsh weather in the company's core Midwest markets. In addition, the analyst “highlighted BWLD's value leadership within the mid-scale bar-and-grill sub-segment of casual dining, which in our view is helping the company maintain top-line momentum.” Miller Tabak expects EPS growth above guidance for 2014 with mid-single-digit comps, lowered commodity costs, reduced operating costs as a percentage of sales, and solid unit growth. The analyst reported that he prefers to “secure recent gains in BWLD shares” given the 23% rally following Buffalo Wild Wings fourth quarter 2013 earnings release. Shares of Buffalo Wild Wings Inc. closed at $151.91 on Friday and is currently trading at $148.64, down 2.15%.