UPDATE: Morgan Keegan Raises PT to $47 on Monro Muffler Brake

Morgan Keegan reiterates its Outperform rating on Monro Myffler Brake

and raises its price target by $5 to $47 as the company beat estimates on OSG&A leverage. Morgan Keegan says, "We are encouraged by MNRO's ability to increase EPS by 20% on a flat comp. While weather and economic conditions negatively impacted tire sales, they also provide the opportunity for MNRO to acquire competitors. Management indicated that MNRO could acquire stores that generate ~$19 million in annual revenue during Q4. We reiterate our Outperform rating with shares trading at 10.4x our NTM EV/EBITDA estimate (3 yr. TTM range: 8.7x-17.4x)." MNRO closed at $40.39 a share yesterday.