Market Overview

UPDATE: Wedbush Upgrades Panera on New Initiatives, Share Repurchases

Share:

In a report published Monday, Wedbush analyst Nick Setyan upgraded Panera Bread Company (NASDAQ: PNRA) from Neutral to Outperform and raised the price target from $185.00 to $215.00.

Setyan commented on increased "expectation for upside to modest 2014 consensus estimates, despite meaningful investments ahead based on 1) checks indicating strong Q1 SSS growth, 2) our belief that national marketing, Panera 2.0 and catering initiatives are poised to sustain sales lifts ahead of expectations, and 3) share repurchases ahead of expectations." The analyst highlighted that the rollout of "Rapid Pick-up" and Fast Lane Kiosks could help address bottlenecks and aid in comp trajectory. Following conversations regarding these opportunities with stores in Charlotte, the stores indicated sales increases of over 20%. Analyst Day also indicated that test market comps are up double-digits, with Wedbush's own research showing a greater than 30% ROI.

Nick Setyan concluded his thesis, reporting that stronger sales and $1 billion in additional debt capacity could further drive upside to EPS expectations.

Shares of Panera Bread closed at $174.00 on Friday. The stock is currently up 1.68% in Pre-Market trading.

Latest Ratings for PNRA

DateFirmActionFromTo
Apr 2017DowngradesOutperformMarket Perform
Apr 2017DowngradesOutperformMarket Perform
Apr 2017DowngradesOutperformSector Perform

View More Analyst Ratings for PNRA
View the Latest Analyst Ratings

Posted-In: Nick Setyan WedbushAnalyst Color Upgrades Analyst Ratings

 

Related Articles (PNRA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

The Future of Marijuana Policy: Southwest

Bank of America Reiterates Underperform on 3D Systems and Lowered PT on Lower LT Margin