Piper Jaffray downgraded Dunkin' Brands (NASDAQ: DNKN) from Overweight to Neutral with a price target of $42.00 (from $60.00).

Analyst Nicole Miller Regan commented, "Third-quarter operating earnings increased 6% y/y to $0.52 per share, the company reiterated its FY15 earnings guidance, and our estimates are modestly lower. While we believe results going forward are achievable, we struggle to see meaningful catalysts from a stock perspective. At 99% franchised, 5x leverage and +MSD% development DNKN shares are already afforded one of the highest valuations relative to its peer group. We are downgrading DNKN shares to Neutral from Overweight prior. Our $42 price target is based on 14x our FY16E EV/EBITDA estimates. Each 1x multiple turn = ~$5/share."

The firm trimmed FY 2015 EPS from $1.91 to $1.90 and FY 2016 EPS from $2.21 to $2.15.

For an analyst ratings summary and ratings history on Dunkin' Brands click here. For more ratings news on Dunkin' Brands click here.

Shares of Dunkin' Brands closed at $39.57 yesterday.