Miller Tabak Upgrades Bob Evans, Says 'Bull Thesis Returns' To Company

In a report published Friday, Miller Tabak analyst Stephen Anderson upgraded the rating on

from Hold to Buy, while raising the price target from $50 to $57, saying that the company would be pursuing more aggressive asset sales. Analyst Stephen Anderson said that the Board of Directors had authorized the company to pursue "a more aggressive asset-light strategy through the sale of restaurant real estate." The news comes even more the company has named a new permanent CEO. While management appears to be moving "preemptively," the news of the authorization may be viewed as "a bullish development." While management appeared more willing to consider a spinoff of the BEF Foods division, the 55 decline y/y in sow costs and the potential naming of a new permanent CEO could "move up the potential timing for a spinoff," Anderson said. In the report Miller Tabak noted, "We also do not rule out the potential for refranchising, which we think could boost restaurant unit counts after a decade of stagnation." Bob Evans is scheduled to report its results for 4Q15 on June 16. "…we do not expect much in the way of top-line performance, though see slow but steady improvement in the next few quarters," Anderson added.