UPDATE: J.P. Morgan Initiates Coverage on Bloomin' Brands with Overweight Rating, $18 PT

In a report published Monday, J.P. Morgan & Co. initiated coverage on Bloomin' Brands BLMN with an Overweight rating and an $18.00 price target. J.P. Morgan noted, “We are initiating coverage of Bloomin' Brands with an Overweight rating and $18 Dec-13 price target. Company specific comp drivers, relatively low risk unit growth opportunity, and identified cost savings help offset industry wide cost pressures. Much of the current strategy is about transition to systems-driven decision making and more efficient cross-brand management driving future growth. This allows toleration of high operating and financial leverage as sales, cost, and FCF achievability appear visible.” Bloomin' Brands closed on Friday at $14.40.