UBS Remains Sidelined Following Dunkin' Brands (DNKN) Analyst Events

UBS maintained a Neutral rating on Dunkin' Brands (NASDAQ: DNKN), and cut the price target to $43.00 (from $45.00), following a recent analyst event and comp pre-announcement. 2015 guidance was largely unchanged w/ the exception of Baskin U.S. sss growth increased to +3-5% vs. +1-3% prior, reflecting strong 3Q momentum.

Analyst Keith Siegner commented, "Following the recent DNKN analyst event and Dunkin' U.S. comp pre-announce (+1.1%), overall 3Q results were largely in line, w/ (+) Baskin U.S. sss strength (+7.5%) and (-) Dunkin' U.S. unit open shortfall notable highlights. 2015 guidance was largely unchanged w/ the exception of Baskin U.S. sss growth increased to +3-5% vs. +1-3% prior, reflecting strong 3Q momentum. 2016 guidance or preliminary targets have not yet been provided, but a key question will be whether the longer-term +2-4 U.S. sss guidance will be part of the target; currently we est. +1.8% and the cons. +2%. After a ~25% pullback in shares since late July and despite a still very attractive business model and strong management team, we view risk/reward as balanced given: 1) concerns around the LT 2-4% sss growth against increased competitive pressures; and 2) questions around whether U.S. unit growth of 4-6% is sustainable or should be something a bit lower."

For an analyst ratings summary and ratings history on Dunkin' Brands click here. For more ratings news on Dunkin' Brands click here.

Shares of Dunkin' Brands closed at $40.86 yesterday.

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