Ignite Restaurant Group (IRG) PT Cut to $5 at Piper Jaffray

Piper Jaffray analyst Nicole Miller Regan reiterated a Neutral rating while cutting her price target on Ignite Restaurant Group (NASDAQ: IRG) to $5.00 (from $8.00) following Q4 resuls.

Regan commented, "Ignite Restaurants delivered 4Q14 adjusted earnings per share of ($0.25) vs. consensus estimates of ($0.27). 1Q15-to-date we understand Joe's is running in (LSD) territory and Brick House is in the positive +MSD digit range. We've pulled out MacGrill numbers from our model as the concept prepares to be removed from the portfolio pending the company's previously announced divestiture for $8.0 mil. which is expected to completed by mid-April. While upside to IRG stock exists as management can refocus its efforts to build momentum at its original core brands (Joe's Crab Shack and Brick House Tavern & Tap), we believe this is in contrast with the loss of its growth stock status/multiple and the need for more consistent visibility into stabilized business trends. We are updating our model, maintaining our Neutral rating, and lowering our price target to $5, based on ~10.5x our FY15 EV/EBITDA."

The firm moved FY 2015 EPS from ($0.24) to ($0.20).

For an analyst ratings summary and ratings history on Ignite Restaurant Group click here. For more ratings news on Ignite Restaurant Group click here.

Shares of Ignite Restaurant Group closed at $5.90 yesterday.

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