Sterne Agee Reiterates Buy with $40 PT on Red Robin

Sterne Agee maintains its Buy rating with a price target of $40 on Red Robin RRGB on impressive Q4 results and same store sales improvement. Sterne Agee says, "Our BUY investment thesis remains intact based on the following: 1) Turnaround is well underway under new leadership – new CEO Stephen Carley; 2) Accelerating unit growth given strong new store performance; 3) Share repurchase authorization of up to $50 million; and 4) Attractive valuation as shares are presently trading at just 5.6x on an EV/EBITDA basis on FY13 projections." RRGB closed at $33.18 a share on Thursday.