UPDATE: BMO Capital Markets Initiates Coverage On Noodles & Co

Loading...
Loading...

BMO Capital Markets initiated coverage on Noodles & Co NDLS in a report issued Thursday with a Outperform rating and $25 price target.

Analyst Andrew Strelzik believed that Noodles & Co "should not only reaccelerate earnings growth ahead of its 25 percent long-term target and exceed consensus expectations in 2015 and 2016, but also generate long-term EPS growth ahead of the target."

Strelzik thought that "over the long term...Noodles is well positioned for sustainable 15 percent+ and 25 percent+ sales and EPS growth given ample "white space" for new stores, comparable restaurant sales growth above its 2.5-3.0 percent target, and the greatest long-term margin expansion opportunity in fast casual."

The price target implied a 46-47x P/E multiple on the firm’s 2015 estimates "that is above its current forward 12-month P/E (39x-40x) and the current fast casual average (38x-39x), but well below NDLS’s historical average (67x-68x)."

Noodles & Co recently traded at $20.29, up 2.37 percent.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsAndrew StrelzikBMO Capital Markets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...