Wunderlich Analysts Bullish On Shares Of Panera Bread Company

On Wednesday, analysts at Wunderlich Securities upgraded shares of Panera Bread Company PNRA to a Buy rating and $185 price target.

Analysts are bullish on Panera’s management team and the company’s attractive valuation.

Robert Derrington highlighted other positives moving forward:

Panera’s same store sales remains a leading indicator for the company. Derrington expects same store sales to continue to accelerate in the next three years. Analysts are especially bullish on improvements in same store sales in fourth quarter 2014 as the company plans to introduce new menu items.

Panera is offering better clarity in company’s promotional plan. Panera plans to demonstrate a more balanced promotional plan in 2015 focusing on a compelling variety of menu offerings at varying prices.

The company’s focus on same store sales will ultimately lead to EPS growth. Panera has invested a considerable amount in the launch of Panera 2.0 that will hurt EPS in the upcoming quarters. Consequently, analysts feel EPS is a less relevant indicator of the company’s strength and place more weight in same store sales.

Shares of Panera closed Tuesday’s session at $162.72 up 2.51 percent.