UPDATE: Goldman Sachs Initiates Coverage on Bloomin' Brands with Buy Rating, $17 PT

In a report published Monday, Goldman Sachs Group initiated coverage on Bloomin' Brands BLMN with a Buy rating and a $17.00 price target. Goldman Sachs noted, “We initiate coverage of BLMN with a Buy rating and a 12-month, $17 price target (18% upside). (1) We see BLMN as a being at the ‘fountain of youth' phase of its life cycle with Outback International, Bonefish Grill, and Carrabba's driving a renewed leg of growth. (2) BLMN's brands are strong and have outperformed the industry with 4% SSS over the past 10 quarters vs. 1% for the industry. (3) Margins have expanded by 400 bp since their 2008 trough and we expect additional gains over the next 12-24 months. (4) FCF generation is strong and may lead to future dividend or repurchase announcements. (5) Shares are inexpensive relative to peers.” Bloomin' Brands closed on Friday at $14.40.