UBS Cuts Price Target on Noodles & Company (NDLS) to $12; Reiterates Neutral

UBS maintained a Neutral rating on Noodles & Company (NASDAQ: NDLS), and cut the price target to $12.00 (from $13.00), following the company's 1Q earnings report. -70 bps of traffic, adjusted for Easter, represented a 60 bps improvement from 4Q, while adj. sales results were comparable through the quarter.

Analyst Keith Siegner commented, "A second consecutive quarter of largely in line and unsurprising results, and without a guidance reduction, is a start. But it's still early to know whether results are beginning to stabilize following a particularly difficult run. Some initial signs of progress, incl. sequential improvement in adjusted traffic trends and unchanged and achievable guidance is somewhat encouraging. As we wait for momentum to return, evidence of inflection in sss and traffic specifically, remains the biggest driver for shares, w/ margin leverage then possible over time. But with visibility still somewhat limited despite several initiatives to support a turnaround, 2016 likely remains a 'show me' story."

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 $11.02 yesterday.

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