Wunderlich Downgrades Panera Bread To Hold, Cites Valuation Reasons

Robert Derrington of Wunderlich Securities on Tuesday downgraded shares of

to Hold from Buy as shares have appreciated to within eight percent of his $185 price target. Derrington notes that Panera Bread is expected to improve its same-store sales throughout 2015 and 2015, aided by the roll-out of its Panera 2.0 initiatives. The analyst adds that the company has also improved its pipeline of new menu offerings and catering sales while balancing its promotional activities. However, Derrngton states that despite an improved business, shares are trading at an EV of 11.x 2015E EBITDA (versus its peers at 13.3x), thus justifying a Hold rating.