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KeyBanc Downgrades Cracker Barrel (CBRL) to Hold; Valuation Call

February 6, 2012 7:10 AM EST
CBRL Hot Sheet
Rating Summary:
    3 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc downgraded Cracker Barrel (NASDAQ: CBRL) from Buy to Hold with a price target of $55.00.

KeyBanc analyst says, "While we continue to view CBRL as an attractive long-term story, we believe that upside to our FY12 and FY13 SSS and EPS estimates is unlikely without a sustained turnaround in urban miles driven trends, as reported by the U.S. Department of Transportation, in the coming months. Accordingly, we feel a HOLD rating is presently warranted as shares are trading in line with CBRL's five-year average forward multiples of 11.3x P/E, 6.7x EV/EBITDA and 0.7x EV/Sales."

"Our 2Q12 EPS estimate of $1.09 (which excludes the expected impact of proxy expenses that will hit the quarter) is $0.07 below the current First Call estimate of $1.16 and $0.11 (9%) below the prior year's $1.20 EPS result."

For an analyst ratings summary and ratings history on Cracker Barrel click here. For more ratings news on Cracker Barrel click here.

Shares of Cracker Barrel closed at $54.72 yesterday, with a 52 week range of $37.31-$54.95.


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