Oppenheimer Has Outperform On Panera

Oppenheimer & Co. is out with a research report on Panera PNRA and it has an Outperform rating and a $135 price target on shares. In a note to clients, Oppenheimer & Co. writes, "We'd be buyers of PNRA and believe the business model is defensively positioned, pricing power is firmly intact and 2012 earnings expectations are underestimated. We expect market share gains to continue through 2012, in spite of higher menu prices, as PNRA's value scores remain top-class and competitors with less compelling SSS drivers and lower price/value appeal are likely to also raise price to offset food cost inflation. The mounting $230M net cash balance and healthy FCF (approaching $200M) could be used to repurchase shares, build high-ROIC units at a faster than expected rate or acquire franchisees--none of which is embedded in 2012 consensus estimates and could provide additional EPS upside." Shares of PNRA gained 71 cents yesterday to close at $108.56.