Piper Jaffray Cuts Price Target on Noodles & Company (NDLS) to $6; Reiterates Underweight

August 5, 2016 9:22 AM EDT
Get Alerts NDLS Hot Sheet
Price: $4.20 -3.45%

Rating Summary:
    2 Buy, 10 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 22 | New: 54
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Piper Jaffray maintained an Underweight rating on Noodles & Company (NASDAQ: NDLS), and cut the price target to $6.00 (from $7.00), following the company's 2Q earnings report. EPS was reported at ($0.03), which was a touch better than expectations. Total revenues increased approximately 5.4% y/y, to $121.4M.

Analyst Nicole Regan commented, "Noodles & Company delivered operating EPS of ($0.03), which was a touch better than our expectations driven in part by system-wide SSS of (1.0%), which were previously pre-announced. Although not explicitly quantified we understand SSS trends in 3Q are likely to be in the (1.5%) to (2.0) range. This sequentially lower trend is driven by the overall competitive environment, challenged operations and tough YoY comparisons. The company also lowered guidance for FY16 while announcing plans to slow new unit growth to 10-15 new company units in FY17. That said, we maintain our Underweight rating and our price target ticks down to $6 based on our maintained ~8x multiple on our now lower FY17E EV/EBITDA."

For an analyst ratings summary and ratings history on Noodles & Co. click here. For more ratings news on Noodles & Co. click here.

Shares of Noodles & Co. closed at $7.25 yesterday.

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