Lake Street Capital Markets Downgrades Potbelly Corp (PBPB) to Hold

Lake Street Capital Markets analyst Mark Smith downgraded Potbelly Corp (NASDAQ: PBPB) from Buy to Hold with a price target of $17.12 (from $15.00).

The analyst comments: "Potbelly announced it has entered into an agreement to be purchased by RaceTrac for $17.12 per share. RaceTrac will commence a tender offer to acquire all shares and needs a majority of shares to consummate the transaction. All of Potbelly's directors and management have agreed to tender their shares which represents 11% of the outstanding shares. Given the premium to the prior share price and the amount of agreed to be tendered shares, we think it is likely that the deal will be completed. The deal is expected to close in 4Q:25. The $17.12 offer price represents a 47% premium to the 90-day trading volume weighted average price. On our 2026 EBITDA estimate, the deal represents an approximate 12.6x EV/EBITDA multiple. We are maintaining our estimates. We previously valued the shares at an 11x multiple on our 2026 EBITDA estimate to derive our prior $15 price target."

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 $16.98 yesterday.

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