KeyBanc Starts Bojangles' (BOJA) at Overweight
Get Alerts BOJA Hot Sheet
Rating Summary:
1 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE
KeyBanc initiated coverage on Bojangles' (NASDAQ: BOJA) with an Overweight rating and a price target of $32.00. Analyst Christopher O'Cull noted the brand's cult-like following in the Southeast, and he thinks the stock deserves a premium valuation.
"We believe BOJA is poised to grow annual revenue at least 10-12% and accelerate earnings growth—averaging 15-17% in 2016-2018. Our rating is based on our opinion a premium valuation is warranted by the Company’s long-term growth prospects, potential upward bias to near-term estimates and high free cash flow conversion," said O'Cull.
"Within its current 10-state footprint, the Company has the potential for as many as 1,400 units (45% penetrated). Over the last two years, unit growth has accelerated to 7.5% annually (vs. 4.7% in 2011). We are projecting annual net unit growth to approximate 8% through 2018, with growth in adjacent markets representing 80% of unit growth (vs. 60-65% projected in 2015)," added the analyst.
For an analyst ratings summary and ratings history on Bojangles' click here. For more ratings news on Bojangles' click here.
Shares of Bojangles' closed at $28.01 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Home Depot (HD) PT Raised to $360 at Telsey, 'in the long term, Home Depot should remain a winner in retail'
- Despite poor sentiment, Morgan Stanley still sees Tesla (TSLA) stock price doubling
- BofA Securities Upgrades Estee Lauder (EL) to Buy; 'Earnings have bottomed'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, New CoverageRelated Entities
KeyBanc, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!