UPDATE: Wunderlich Securities Reiterates On Panera Bread On EPS Volatility Risk

In a report published Thursday, Wunderlich Securities analyst Robert M. Derrington reiterated a Hold rating on

, but lowered the price target from $180.00 to $170.00. In the report, Wunderlich Securities noted, “Panera Bread (PNRA) appears in full roll-out mode of its 2.0 service initiative designed to serve evolving consumer dining needs aided by technology. "Our recent channel checks indicate roll out of 2.0, including Rapid Pickup (RPU), Order to Your Table, and Large and Small Order Delivery, is accelerating with RPU in most all co-cafes by June 30 and franchise cafes before year-end. However, our checks indicate only modest SSS lift in Q2 to date, though expected to build as promo support is added. "While we project co-SSS to improve through Q4, management has cautioned that its investment in people and systems ‘may depress margins and earnings in 2014/2015.' Pending more stabilized trends and factoring a 22x P/E to our 2015 EPS, we are lowering our PT to $170 from $180.” Panera Bread closed on Wednesday at $152.06.