DA Davidson Upgrades McCormick & Schmick's (MSSR) to Buy, Things Will Soon Be Better
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Price: $8.76 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson upgraded shares of McCormick & Schmick's (NASDAQ: MSSR) to a Buy rating from its previous rating of Neutral and reaffirmed its price target of $8.50.
The firm does not see the Board recommending to sell the company after its unanimous decision on April 20 and believes that management will continue to do its part to regain business momentum through store remodels, reinvesting in labor, and culinary efforts.
DA Davidson does not see the Board agreeing to any sale under $10 per share and feels that $9.25 would be the lowest amount that they would endorse.
An analyst at the firm comments, "If the Board rejects his efforts to buy the company through the sales review process, we think it is likely another hostile approach will follow. A successful proxy fight would enable him to remove the shareholder unfriendly poison pill and attempt to purchase the company. If the formal review fails to result in a transaction and the stock continues to languish, we believe he could successfully generate shareholder support."
DA Davidson highlights that shareholders would benefit from any outcome, the company's business improving or the probability of a transaction increases.
The firm currently estimates 2011 and 2012 EPS estimates of $0.28 and $0.29 with $345.7 million and $345.2 million in revenue for the two years.
For more ratings news on McCormick & Schmick's click here and for the rating history of McCormick & Schmick's click here.
Shares of McCormick & Schmick's closed at $5.91 yesterday.
The firm does not see the Board recommending to sell the company after its unanimous decision on April 20 and believes that management will continue to do its part to regain business momentum through store remodels, reinvesting in labor, and culinary efforts.
DA Davidson does not see the Board agreeing to any sale under $10 per share and feels that $9.25 would be the lowest amount that they would endorse.
An analyst at the firm comments, "If the Board rejects his efforts to buy the company through the sales review process, we think it is likely another hostile approach will follow. A successful proxy fight would enable him to remove the shareholder unfriendly poison pill and attempt to purchase the company. If the formal review fails to result in a transaction and the stock continues to languish, we believe he could successfully generate shareholder support."
DA Davidson highlights that shareholders would benefit from any outcome, the company's business improving or the probability of a transaction increases.
The firm currently estimates 2011 and 2012 EPS estimates of $0.28 and $0.29 with $345.7 million and $345.2 million in revenue for the two years.
For more ratings news on McCormick & Schmick's click here and for the rating history of McCormick & Schmick's click here.
Shares of McCormick & Schmick's closed at $5.91 yesterday.
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