Piper Jaffray Starts Zoe's Kitchen (ZOES) at Overweight

(Updated - May 6, 2014 7:37 AM EDT)

Piper Jaffray initiated coverage on Zoe's Kitchen (NYSE: ZOES) with an Overweight rating and a price target of $32.00.

Analyst Nicole Miller Regan said, "We are initiating coverage of ZOES shares with an Overweight rating and $32 price target, which is 18x FY15E Core Business EBITDA + $16/Share New Unit Pipeline Value. We believe this multiple is warranted given the scarcity value due to very few restaurant growth options from a public company perspective as well as a proven strategy to continue market share gains, the pipeline value of future development and the resulting opportunity for operating margin leverage that generates earnings upside. In addition, we believe human capital trumps financial capital and view the pedigree of this team and its historical success as a critical framework. Potential catalysts include continued positive same-store sales, accelerated development and margin improvement."

For an analyst ratings summary and ratings history on Zoe's Kitchen click here. For more ratings news on Zoe's Kitchen click here.

Shares of Zoe's Kitchen closed at $28.99 yesterday.

You May Also Be Interested In

• Jefferies Group (JEF) PT Lowered to $83 at Oppenheimer
• B.Riley Starts Whitehawk Therapeutics (WHWK) at Buy
• Baird Starts Faeth Therapeutics (FTH) at Outperform