Benchmark Initiates Coverage On The Pantry With Buy Rating

According to Benchmark, The Pantry PTRY coverage is initiated with a Buy Rating and $20 Price Target. Benchmark reported that it contends that the shares have upside potential, given the Company's growth and operating margin opportunities. “We believe over the next couple years, The Pantry could continue to improve its store base, taking advantage of the current retail real estate market, which could lead to years of revenue growth. Through new and improved systems, we expect the Company to continue to drive comps and expand operating margins. While we are optimistic about margin expansion in the future, in 2Q11 we expect heavy margin pressure. Given the solid balance sheet, cash flow, profitability, and management's improving execution, we believe shares should trade at a higher multiple. We have set a price target of $20 based on 20x our FY11 EPS estimate of $1.01.” The Pantry closed yesterday at $15.09.