NEW YORK (TheStreet) -- Cracker Barrel Old Country Store (CBRL - Get Report) has been upgraded to "buy" from "hold" at Miller Tabak on the basis of a valuation call. Analysts gave the stock an $114 price target, noting the stock has fallen 20% since November.
TheStreet Ratings team rates CRACKER BARREL OLD CTRY STOR as a Buy with a ratings score of A. The team has this to say about their recommendation:
"We rate CRACKER BARREL OLD CTRY STOR (CBRL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CBRL's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 60.59% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CBRL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CRACKER BARREL OLD CTRY STOR has improved earnings per share by 17.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CRACKER BARREL OLD CTRY STOR increased its bottom line by earning $4.89 versus $4.41 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $4.89).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from $23.19 million to $27.16 million.
- You can view the full analysis from the report here: CBRL Ratings Report