Analyst Eric Gonzalez from RBC Capital gave an Outperform rating on Panera Bread Co (NASDAQ:PNRA) with a price target of $250, marking a 21% increase from current levels.

The analyst predicts EPS growth of over 20% for the next two years and believes that investors are underestimating Panera’s earnings for several reasons. First, he sees “upside consensus’ 2017 SSS estimate of 4%” and with price increases of 2-3% per year, the analyst thinks a 5% estimate in 2017 is conservative. Additionally, Gonzalez’s analysis shows that an EBIT margin of 11% is possible by 2018 if they leverage technology, operational investments, supply chain efficiencies, and refranchising efforts.

Furthermore, a survey indicated that Panera’s product is viewed as one of the best and has one of best ingredient quality. Additionally, 12% of consumers stated they would eat at Panera more often if lines were shorter.

According to TipRanks, 9 analysts are bullish on the company and 2 are neutral. The average 12-month price target between these 11 analysts is $238.67, marking a 15% potential upside from current levels.