Morgan Keegan Lowers PT On PTRY To $22

Morgan Keegan, in its First Look report, has lowered its price target on The Pantry PTRY to $22 from $25 to reflect lower net fuel margins and lower comp estimates. The report reiterates an Outperform rating on the stock. According to Morgan Keegan, “We continue to like the long-term outlook and encourage investors to take advantage of the any price weakness given easier fuel comparisons, moderating unemployment rates, potential multiple expansion in the seasonally stronger earnings period of Q3/Q4, initial success with reimages/enhanced in-store offerings, opportunity for longer-term margin enhancement and near historic low valuation multiples.” PTRY closed yesterday at $15.39.