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Beaten-Up Panera Bread (PNRA) Named Top Restaurant Pick at BofA/Merrill Lynch

July 31, 2014 8:26 AM EDT
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Price: $314.93 --0%

Rating Summary:
    12 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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BofA/Merrill Lynch analyst Joseph Buckley is making Panera Bread (NASDAQ: PNRA) its Top Restaurant Pick despite recent troubles. The firm reiterated a Buy rating and price target of $185.00.

Buckley said while "Panera 2.0" will restrain earnings in 2014-15 the company's focus on meeting different customer needs for eat-in, to go, and delivery should significantly enhance cafe sales capacity. In-store kiosk/tablet ordering and advance mobile ordering and payment are key parts of the plan, the analyst notes.

The firm is shifting its focus to 2016 EPS estimate to derive our price objective. This is the year the company should be approaching normalized earnings.

"Timing for the story may be ill-defined but the upside potential, in our view, is substantial," the analyst said.

The firm lowered EPS estimates from $7.00 to $6.68 for 2014 and from $7.90 to $7.20 for 2015. 2016 EPS estimate is maintained at $9.52.

For an analyst ratings summary and ratings history on Panera Bread click here. For more ratings news on Panera Bread click here.

Shares of Panera Bread closed at $151.76 yesterday.



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