UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Arcos Dorados Holdings on Downward EPS

In a report published Monday, J.P. Morgan analyst John Ivankoe reiterated a Neutral rating on Arcos Dorados Holdings

, but lowered the price target from $14.00 to $12.00. In the report, Ivankoe noted, “After briefly reaching a high of ~$28.50 on September 9, 2011, the stock has traded poorly and now sits near its lows, including 2012 performance of -55% followed by 2013 performance of -6% relative to the S&P 500. We are consistently asked about the name and have revisited our thesis. At this point, we believe Neutral remains the right call as we see near-term headline comps—including from Brazil—gaining some strength, but EPS, primarily from Venezuela as well as Argentina's currency depreciation, requiring downward reduction. Further, the summer 2014 World Cup hosted in Brazil is a globally sponsored McDonald's event, which may likely begin to gain significant attention in the marketplace. At 22.2x ex-PPA F14 EPS, the stock is currently trading at the higher end of the 18-22x range normally awarded to 15%+ EPS growth. Our Dec-13 price target is $12, representing a relatively full 22x multiple on ex-PPA EPS of $0.56.” Arcos Dorados Holdings closed on Friday at $12.36.