NEW YORK (TheStreet) -- Shares of Bob Evans Farms (BOBE) are sinking, down 6.43% to $52.20 in pre-market trading on Wednesday, after the full-service restaurant company had its rating cut to "underweight" from "hold" by analysts at KeyBanc this morning following its second quarter earnings results.
Analysts at firm set a price target of $45, citing the company's ongoing structural issues and a lack of shareholder friendly capital options.
Bob Evans reported adjusted net income for the second quarter of $8.6 million, or 36 cents per share, higher than the 33 cents per share analysts polled by Thomson Reuters expected.
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Revenue for the second quarter was up 0.2% to $333.28 million from a year ago, but missed analysts' estimates of $343.76 million for the period.
Separately, TheStreet Ratings team rates BOB EVANS FARMS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOB EVANS FARMS (BOBE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity."
- You can view the full analysis from the report here: BOBE Ratings Report