Piper Jaffray Neutral On P.F. Chang's China Bistro

Piper Jaffray is out with a research report on P.F. Chang's China Bistro PFCB and it has a Neutral rating and a $38 price target on shares. In a note to clients, Piper Jaffray writes, "Heading into the second week of restaurant earnings, we maintain our Neutral stance on PFCB shares, but acknowledge that ongoing initiatives at both brands and general strength in broader casual dining trends are net positives for the company. For 2Q11, we have increased our comp assumption to (1.5%) from (3.0%) and have increased our EPS expectation to $0.55 from $0.52 prior. That said, we are looking for higher-than-previously-expected restaurant-level costs in 3Q11 and have lowered our EPS estimate to $0.50. We note that the company previously maintained its EPS guidance for $2.15-$2.20 and acknowledge our estimates could prove conservative should food cost inflation pull back or same-store sales trends re-accelerate at a quicker-than-expected pace. We maintain our Neutral rating and $38 price target on PFCB shares." Shares of PFCB lost 89 cents on Friday to close at $39.19, a loss of 2.22%.