Jefferies Reiterates Hold Rating on Texas Roadhouse (TXRH)
Jefferies & Company is out with a research report this morning, where it reiterates its Hold rating on Texas Roadhouse (NASDAQ: TXRH); it has a $16.00 price target on the stock.
The Jefferies analysts cited the company's recently reported quarterly earnings report, which was better than expected across all metrics. The beat was driven by Q3 SSS, which outperformed the Knapp Track full service average by about 350bps vs. its average outperformance of about 260bps during the previous 6 quarters.
TXRH also raised guidance to the high end of the range.
As for valuation, the analysts remarked, “Our 12-month target price of $16 is based on 17x our 2011E EPS. This represents a discount to the 5-year average forward valuation of about 21x EPS to account for its slower unit growth rate.”
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