Shares of BJ's Restaurants (NASDAQ: BJRI) rose as much as 11.4% in Friday's morning session, boosted by an analyst upgrade. By 3:20 p.m. EDT, the restaurant chain's stock had settled down to a 3.4% gain.
Analyst firm Oppenheimer upgraded BJ's from "perform" to "outperform," setting the stock's price target at $52 per share. Reaching that level would add another 26% to BJ's share price. Oppenheimer analyst Brian Bittner noted that share prices had fallen 45% from last summer's 52-week highs, creating an attractive risk-to-reward profile at current prices.
Image source: Getty Images.
BJ's bears have been concerned that the company may fall short of Wall Street's full-year earnings targets, but Bittner argues that the company should be able to meet current expectations. In last month's first-quarter earnings call, management outlined strong year-over-year EBITDA growth in the second and third quarters. The company is also arguably less exposed to Chinese-American trade tensions since only 5% of its ingredients are sourced via Chinese distributors. The Oppenheimer analyst expects these positives to shine through next Wednesday, when company executives are slated to give a presentation at the analyst firm's annual consumer and e-commerce conference.
10 stocks we like better than BJ's Restaurants
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and BJ's Restaurants wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.