Piper Jaffray Downgrades BJ's Wholesale To Neutral

Based on current valuation, Piper Jaffray is adjusting its rating on shares of BJ's Restaurants BJ to Neutral. Piper recognizes BJ's as one of the premier growth names in the casual dining space and credit the company for its best-in-class management team and dining experience. Piper's bias towards the limited service and fine dining segments and their favorable strategic/demographic exposure vs. casual dining ultimately wins out. Piper believes that approximately 12% new unit development in FY11 warrants a premium multiple. Further, Piper Jaffray continues to believe ongoing restaurant-level investments help support a compelling value proposition for consumers and should in turn help the company maintain solid SSS trends versus casual dining peers. However, it believes shares are fully valued on a relative basis vs. limited service and fine dining peers. Piper Jaffray has a $32 PT on BJ BJ closed Wednesday at $33.66