Panera's brand remains strong, stock could be near bottom says Piper Jaffray

Piper Jaffray issued a company note on Panera Bread Co.

and issued their earnings projections for the year. Currently Piper Jaffray rates the restaurant chain as Underweight with a $140 price target. Nicole Regan and Joshua Long, analysts at Piper Jaffray, wrote, "we believe the sentiment on PNRA shares is forming a bottom as 56 percent of sell-side ratings reflect a hold/sell opinion. Although we do still expect shares to be range bound we have adjusted our price target upwards to reflect an industry average EBITDA multiple. While valuation in isolation leaves us less negative, we await greater visibility into a permanent management team and the rollout of the 2.0 platform by franchisees before becoming more constructive." Piper Jaffray notes that Panera has experienced 8 transitions at the CEO, COO, and CFO level in the past 5 years. This has caused concern over the stability of management and the company's strategic goals. However because Panera pioneered the fast-casual segment and has a loyal following of customers Piper Jaffray has little concern with the long-term sustainability of the Panera brand. Panera Bread is currently trading at $160, up 0.29 percent.