Piper Jaffray Downgrades Ignite Restaurant Group (IRG) to Underweight

Piper Jaffray downgraded Ignite Restaurant Group (NASDAQ: IRG) from Neutral to Underweight with a price target of $3.00 (from $5.00) following Q1 results.

Analyst Nicole Miller Regan commented, "While management refocuses efforts to build momentum at its original core brands, the lack of stability in results concerns us. We are therefore downgrading IRG shares to Underweight from Neutral with a now $3 price target (was $5). Our price target is based on ~7x FY16E EV/EBITDA. The restaurant cycle remains favorable, which may prove our valuation and rating conservative. First-quarter earnings were in line with our estimate at ($0.04) per share. Total revenues of $122.2 million were based partially on same-store sales of (3.8%) at Joe's vs. our (3.0%) estimate and +5.4% at Brick House vs. our +4.0% estimate. "

For an analyst ratings summary and ratings history on Ignite Restaurant Group click here. For more ratings news on Ignite Restaurant Group click here.

Shares of Ignite Restaurant Group closed at $3.57 yesterday.

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