KeyBanc Upgrades BJ's Restaurants (BJRI) to Buy

KeyBanc upgraded BJ's Restaurants (NASDAQ: BJRI) from Hold to Buy with a price target of $52.00.

Analyst Christopher O'Cull said, "We are upgrading BJ's Restaurants, Inc. (BJRI-NASDAQ) to BUY from HOLD, as we are more comfortable with the near-term risk/reward for the following reasons: 1) EPS visibility has improved as a result of cost optimization initiatives; 2) SRS momentum appears to be building as the check average drag has started to dissipate; and 3) we believe market sentiment is overly negative about new store productivity. We think BJRI can support a premium valuation as operating momentum should drive at least 150 bps of EBIT margin expansion during the next two years and the system likely expands at least 10% annually, resulting in as much as 20-25% EPS CAGR through 2017."

For an analyst ratings summary and ratings history on BJ's Restaurants click here. For more ratings news on BJ's Restaurants click here.

Shares of BJ's Restaurants closed at $44.24 yesterday.

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