Jefferies Raises Price Target on Panera Bread (PNRA) to $195; Says Turnaround Continues to Take Shape

Jefferies reiterated a Hold rating on Panera Bread (NASDAQ: PNRA), and raised the price target to $195.00 (from $190.00), following the company's 4Q earnings report. PNRA was able to contain costs in 4Q, and with 3.6% SSS, managed to deliver modest EPS growth after a number of down quarters. PNRA benefited from additional Y/Y media spend, and initiatives drove further momentum.

Analyst Alexander Slagle commented, "Solid 4Q with better SSS trends emerging in January. Although cost headwinds continue through ’16, it seems more likely that these incremental investment costs will diminish by year end, allowing EPS to ramp in ’17. Along with this, we think visibility is improving and risk of significant EPS downside is fleeting. Our ’16 EPS unchanged, but ’17 slightly higher as DD EPS growth seems likely. We rate PNRA Hold as we believe 25x '17 EPS already assumes a rebound."

For an analyst ratings summary and ratings history on Panera Bread click here. For more ratings news on Panera Bread click here.

Shares of Panera Bread closed at $193.86 yesterday.

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