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Panera Has 18% Upside, Says Piper Jaffray

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Panera Has 18% Upside, Says Piper Jaffray

  • Piper Jaffray reiterated an Overweight rating and $225 price target on Panera Bread Co (NASDAQ: PNRA) on Monday.
  • Analysts Nicole Miller Regan and Joshua C. Long argued that they “remain encouraged by both short- and long-term efforts.”
  • Shares of Panera are down roughly 0.5 percent on Tuesday trading.
  • In a report issued Monday, Piper Jaffray analysts Nicole Miller Regan and Joshua C. Long reiterated an Overweight rating and $225 price target on shares of Panera. The firm also reiterated a 3 percent same-store sales growth estimate for the third quarter of the year and expect to see an overall solid quarter at the company. In fact, they believe the same-store trends’ stability should help the stock price remain stable as well.

    Upside Ahead For Panera

    The experts assured they feel “encouraged by continued positive comp trends near-term.” Long term, they said, “The model is most powerful in terms of brand modernization efforts that provide a sales lift/leverage and from ancillary earnings benefits from early stage CPG and digital ordering efforts.”

    Related Link: Piper Jaffray 'Remains Buyers' Of Panera Bread On Digital Sales, Channel Checks

    Moreover, they think the aforementioned initiatives will engender cash flow for capital deployment – via share repurchases now and perhaps by way of a dividend at some time in the future. In time, they see the share repurchase program supporting double the earnings power outlook.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    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: Joshua C. Long Nicole Miller Regan Piper JaffrayAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

     

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