Panera Bread: Stock’s Downside Is Limited And Risk/Reward Is Compelling, Says Oppenheimer

Oppenheimer analyst Brian Bittner assigned an Outperform rating on Panera Bread (NASDAQ:PNRA) with a price target of $187.00.

Bittner observed, “Yes, Street’s ’15E EPS likely needs to come down after mgmt reveals targets on tomorrow’s call. But with traffic now positive (and accelerating) and valuation at only 10x EBITDA, we believe stock’s downside is limited and risk/reward is compelling. The near-term EPS issues are investment cost-driven and likely to end in ’15, so as investors get closer to building a thesis around a “clean” ’16 and traffic remains positive, the stock should begin to appreciate.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Bittner has a total average return of 13.9% and a 71.1% success rate. Bittner has a -0.5% average return when recommending PNRA, and is ranked #277 out of 3350 analysts.

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