Rodman & Renshaw Reiterates Outperform Rating on Rick's Cabaret

Rodman & Renshaw is out with a research report this morning, where it reiterates its Outperform rating on Rick's Cabaret RICK; it has a $12.75 price target on the stock. The R&R analysts cited the company's recent quarterly nightclub sales, which totaled $20.5 million in the third quarter ending June 30, 2011. This was an increase of 15.2% over revenues of $17.8 million in the same quarter in 2010. The figures do not include results from Rick's Cabaret in Las Vegas, which was discontinued during the quarter. Same store sales at clubs operated for more than one year rose 9.0% for the quarter, to $19.2 million from $17.6 million in the same period in 2010. As for valuation, the analysts remarked, “Our price target stands at $12.75 based upon a multiple of 15 times our median recurring EPS estimate of $0.85. Our target multiple is below that of the S&P Consumer Discretionary Index (16.3x) and some higher end restaurants chains like Morton's (NYSE – Not Rated - 16.2x).