Barclays Maintains an 'Equalweight' on P.F. Chang’s (PFCB); 'Three Leg' Portfolio Evolution - Drinking from a Fire Hydrant Often Challenging
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Price: $51.47 --0%
Rating Summary:
2 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on P.F. Chang’s (NASDAQ: PFCB) price target of $35.00.
Barclays analyst says, "PFCB's 2011 Investor Day was timely in that the entire "three leg" stool/portfolio is in the midst of major transformation. The Bistro and Pei Wei are both aggressively looking to identify and address recent comp deceleration and underperformance relative to peers. And the Global Brands division is in the midst of frantic growth, both specific to Home Menu offerings and Int'l expansion. Significant change or uncertainty in any division of a company leads to investor unease. When such is the case for all divisions, uneasiness is intensified (and fast). The question remains whether the various initiatives at each segment will resolve concerns, especially as it relates to their two core brands, without damaging consumer perception & financial performance. We are pleased with management's rigor to address such issues and believe signs of even modest progress at either core brand could drive short-term stock appreciation. With that said, we expect the level of uncertainty to limit sustainable near-term outperformance, despite a compelling valuation (especially on cash flow)."
For an analyst ratings summary and ratings history on P.F. Chang’s click here. For more ratings news on P.F. Chang’s click here.
Shares of P.F. Chang’s closed at $30.06 yesterday.
Barclays analyst says, "PFCB's 2011 Investor Day was timely in that the entire "three leg" stool/portfolio is in the midst of major transformation. The Bistro and Pei Wei are both aggressively looking to identify and address recent comp deceleration and underperformance relative to peers. And the Global Brands division is in the midst of frantic growth, both specific to Home Menu offerings and Int'l expansion. Significant change or uncertainty in any division of a company leads to investor unease. When such is the case for all divisions, uneasiness is intensified (and fast). The question remains whether the various initiatives at each segment will resolve concerns, especially as it relates to their two core brands, without damaging consumer perception & financial performance. We are pleased with management's rigor to address such issues and believe signs of even modest progress at either core brand could drive short-term stock appreciation. With that said, we expect the level of uncertainty to limit sustainable near-term outperformance, despite a compelling valuation (especially on cash flow)."
For an analyst ratings summary and ratings history on P.F. Chang’s click here. For more ratings news on P.F. Chang’s click here.
Shares of P.F. Chang’s closed at $30.06 yesterday.
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