Piper Jaffray Downgrades Potbelly Corp (PBPB) Two-Notches to Underweight

Piper Jaffray downgraded Potbelly Corp (NASDAQ: PBPB) from Overweight to Underweight with a price target of $12.00 (from $16.00) following CFO departure.

Analyst Nicole Miller Regan commented, "We are lowering our rating on PBPB shares to an Underweight (from OW) following last night's announcement of the departure of CFO Mr. Charlie Talbot, which lessens credibility with investors, in our view. Mr. Talbot has accepted a senior leadership position with another non-restaurant company. Furthermore, given the one-dimensional nature of the business model, we believe fundamental upside is unlikely, which at the very least could result in dead money in terms of PBPB share performance. Our $12 (vs. $16 prior) PT is now based on 8x our FY15 EV/EBITDA. This event, and our resulting change of opinion, in no way, shape or form influences our positive bias on the restaurant industry."

For an analyst ratings summary and ratings history on Potbelly Corp click here. For more ratings news on Potbelly Corp click here.

Shares of Potbelly Corp closed at $14.69 yesterday.

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