UPDATE: Goldman Sachs Initiates Dunkin' Brands at Sell

Goldman Sachs is out with its report today on Dunkin' Brands DNKN, initiating DNKN at Sell. In its report, Goldman Sachs writes, "We initiate coverage of DNKN with a Sell rating and $23 target, implying 15% downside, versus our Restaurant coverage group's average 6% upside. We like DNKN's growth potential in the US and internationally, its margins are best in class, and there is the potential for capital allocation to boost shareholder returns. However, even after incorporating these opportunities, we do not expect the long-term EPS growth algorithm to exceed the mid-teens (in line with mature companies such as MCD MCD/YUM YUM, yet the shares reflect faster growth. DNKN shares are up 65% from the initial $16-18 IPO range, and now trade ahead of fair value, in our view." At the time of posting, shares of DNKN were trading pre-market at $26, down 3.70% from Friday's close.