In a report released today, Stephen Anderson from Maxim Group downgraded Cheesecake Factory (NASDAQ: CAKE) to Hold, with a price target of $60. The company’s shares closed yesterday at $59.83, close to its 52-week high of $60.08.
Anderson wrote:
“We downgrade shares of The Cheesecake Factory (CAKE) to the share price reached our $60 price target yesterday. CAKE’s comp growth is accelerating, and we see renewed margin expansion, buybacks, and potentially an acquisition contributing to at least low-teen EPS growth, but we now believe these positives have been priced into shares. Our EPS estimates are unchanged at $0.83 for 2Q18 (vs. $0.81 consensus), $2.77 for 2018 (vs. $2.69 consensus), and $3.16 for 2019 (vs. $2.91 consensus). CAKE shares have risen 25% year-to-date vs. the industry average of a 1% drop year-to-date, and now trade at 19x forward P/E, inline with the five-year average.”
According to TipRanks.com, Anderson is a top 100 analyst with an average return of 14.4% and a 75.4% success rate. Anderson covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Good Times Restaurants Inc, and Dine Brands Global Inc.
Currently, the analyst consensus on Cheesecake Factory is Hold and the average price target is $54.90, representing a -8.2% downside.
In a report issued on June 18, BTIG also downgraded the stock to Hold with a $55 price target.
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Cheesecake Factory’s market cap is currently $2.73B and has a P/E ratio of 19.05. The company has a Price to Book ratio of 4.60.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is neutral on the stock.
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Cheesecake Factory, Inc. engages in the operation of chain restaurants. Its menu offering includes appetizers, pizza, seafood, steaks, chicken, burgers, small plates, pastas, salads, sandwiches, omelettes, and desserts. The company was founded by David M. Overton, Oscar Overton, and Evelyn Overton in 1972 and is headquartered in Calabasas Hills, CA.
