In a report published Friday, Wunderlich Securities analyst Robert M. Derrington reiterated a Hold rating on Panera Bread Company (NASDAQ: PNRA), but lowered the price target from $170.00 to $162.00.
In the report, Wunderlich Securities noted, “We believe Panera (PNRA) is making progress on its plan dubbed ‘The Path Forward,' designed to serve evolving consumers' dining needs aided by technology. We believe roll out of the first phase of its Panera 2.0 initiative, dubbed Rapid Pickup (RPU), appears complete in co-cafes and is rolling into franchise cafes with promo support planned in the months ahead. Despite that, we believe Q214 sys-SSS remained weak dragged by soft consumer spending, intense competition, and a lower check avg. and catering sales. As a result, we are trimming our Q2 sys-SSS to 1.1% from 1.8% and EPS to $1.71 from $1.76. Cautiously, we have lowered 2014 EPS to $6.80 from $6.88, and 2015 to $7.35 from $7.88. Factoring a 22x P/E to our 2015 EPS, we are lowering our PT to $162 from $170 and reit. our Hold rating.”
Panera Bread Company closed on Thursday at $145.63.
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