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William Blair Reiterates Bullish Stance On Potbelly Corp Following Strong Earnings


William Blair analyst Sharon Zackfia reiterated an Outperform rating on Potbelly Corp (NASDAQ:PBPB), following the company’s fourth-quarter results, posting EPS of $0.06 that were ahead of consensus estimates of $0.03. No price target was provided.

Zackfia noted, “Net income is expected to rise at least 20% in 2015, in line with our and the consensus expectations, although the higher base from the fourth quarter upside will translate into higher 2015 estimates. We are raising our 2015 EPS estimate by $0.03, to $0.27, up 22% and above consensus of $0.24.”

The analyst added, “We continue to like shares despite the recent stock momentum, as the valuation still represents a near-40% discount to its peer group, and we see the potential for further upward earnings revision on improving sales trends.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sharon Zackfia has a total average return of 17.1% and a 70.0% success rate. Zackfia has a -13.7% average return when recommending PBPB, and is ranked #374 out of 3476 analysts.