Oppenheimer reiterated an Outperform rating on Kona Grill (NASDAQ: KONA), and cut the price target to $20.00 (from $25.00), following the company's 3Q earnings report. While slightly below management's outlook, the quarter was solid in light of temporary Denver store headwinds and 4Q EBITDA outlook that is actually above the Street.

Analyst Brian Bittner commented, "With the stock down 31%+ since 2Q15 earnings, investors were braced for bad 3Q15 results and poor 4Q15 guidance. But, in the face of several temporary headwinds, comps and EBITDA were very solid and should restore confidence, in our view. Plus, mgmt reiterated a view on the call that '16 company-wide profitability should significantly improve from '15—a pillar of our near-term thesis. Longer-term, the 20% annual unit growth story is healthy in our view, as the pipeline is robust and new unit sales volumes continue to outperform."

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Shares of Kona Grill closed at $13.91 yesterday.