Barclays Maintains an 'Equalweight' on Cheesecake Factory (CAKE); 2Q Lower Quality...2011 Growth Still Solid
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Price: $106.53 --0%
Rating Summary:
9 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
9 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Barclays maintains an 'Equalweight' on Cheesecake Factory (NASDAQ: CAKE), price target of $33.
Barclays analyst says, "2Q11 will likely be viewed as a 'shortfall', despite EPS ahead of guidance and in line with the Street. Top-line growth fell modestly below expectation, pressuring margins, though a lower share count and tax rate offset. 2011 ranges were tightened, with comp to the lower end, while EPS to the higher end. Long-term guidance remains for "mid-teens" EPS growth, with 2012 to see a re-acceleration in unit openings. With 2Q11 not likely to impress and 2011 consensus EPS likely unchanged, we don't expect near-term outperformance. We remain confident in the underlying improvement of casual dining traffic thru 2011, and believe shares fairly valued, currently ~17x versus the 7-23x 3-year range and 17x average." (Barclays lowers FY11 EPS estimates from $1.69 to $1.67 and FY12 from $1.96 to $1.92)
For more ratings news on Cheesecake Factory click here and for the rating history of Cheesecake Factory click here.
Shares of Cheesecake Factory closed at $32.69 yesterday.
Barclays analyst says, "2Q11 will likely be viewed as a 'shortfall', despite EPS ahead of guidance and in line with the Street. Top-line growth fell modestly below expectation, pressuring margins, though a lower share count and tax rate offset. 2011 ranges were tightened, with comp to the lower end, while EPS to the higher end. Long-term guidance remains for "mid-teens" EPS growth, with 2012 to see a re-acceleration in unit openings. With 2Q11 not likely to impress and 2011 consensus EPS likely unchanged, we don't expect near-term outperformance. We remain confident in the underlying improvement of casual dining traffic thru 2011, and believe shares fairly valued, currently ~17x versus the 7-23x 3-year range and 17x average." (Barclays lowers FY11 EPS estimates from $1.69 to $1.67 and FY12 from $1.96 to $1.92)
For more ratings news on Cheesecake Factory click here and for the rating history of Cheesecake Factory click here.
Shares of Cheesecake Factory closed at $32.69 yesterday.
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