UPDATE: Miller Tabak + Co. Upgrades Texas Roadhouse to Buy, Raises PT Ahead of Company Earnings Release

In a report published Monday, Miller Tabak + Co. analyst Stephen Anderson upgraded the rating on

from Hold to Buy, and raised the price target from $26.00 to $33.00. In the report, Miller Tabak + Co. noted, “We upgrade shares of Texas Roadhouse (TXRH) to Buy (from Hold) and raise our price target to $33 (from $26) ahead of the company's earnings release on October 28. Even as mid-scale steakhouses have been a strong casual dining sub-segment in the past three years, TXRH has gained more market share than its rivals in this sub-segment, and we expect TXRH's value orientation to reinforce this market leadership in the next couple of years. Moreover, we think the recent drop in gasoline prices will provide a boost to casual dining, and expect TXRH to be a particular beneficiary given that gasoline prices in TXRH's core markets are nearing the $3.00/gallon level. We also argue an inflection point on food costs is near, particularly as corn feed prices now have fallen to a three-year low, and looking ahead to 2015, we anticipate the combination of lower feed costs and mitigation of drought conditions to prompt replenishment of cattle herds, thus leading to stable or even lower beef costs.” Texas Roadhouse closed on Friday at $25.80.