Canaccord Genuity Thinks BJ’s Restaurants’ Stock is Going to Recover

By Carrie Williams

In a report released yesterday, Lynne Collier from Canaccord Genuity maintained a Buy rating on BJ’s Restaurants (NASDAQ: BJRI), with a price target of $42. The company’s shares opened today at $32.50, close to its 52-week high of $47.55.

Collier said:

“We maintain our BUY rating and would view any potential weakness in shares as a buying opportunity (down ~ 4% AH). While Q2 results and the company’s QTD sales outlook fell short, we remain confident in our thesis: (1) We believe the brand’s “polished” casual positioning remains relevant with consumers. (2) Off-premise represents a significant opportunity as “to-go”/delivery represents just ~5% of sales, which is well below the industry average of 10%-11%. (3) Our checks indicate a strong consumer response to BJRI’s new, slow-roasted menu items, which we anticipate will ultimately drive a higher check average. (4) We believe that BJRI has the opportunity to more than double its store base from current levels. (5) We see an attractive risk/reward as shares are trading at just 7x NTM EBITDA, which is one of the lowest multiples in the industry and more than one standard deviation vs. its historical average.”

According to TipRanks.com, Collier is a 5-star analyst with an average return of 16.1% and a 72.1% success rate. Collier covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Brinker International, and The Chefs’ Warehouse.

BJ’s Restaurants has an analyst consensus of Hold, with a price target consensus of $42.67.

BJ’s Restaurants’ market cap is currently $738.8M and has a P/E ratio of 18.72. The company has a book value ratio of 2.8772.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2017, Brian Krakower, the CIO of BJRI sold 1,968 shares for a total of $88,029.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

BJ’s Restaurants, Inc. owns and operates casual dining restaurants. The company operates BJ’s Restaurant and Brewery, BJ’s Restaurant & Brewhouse, BJ’s Pizza and Grill or BJ’s Grill. It offers pizzas, appetizers, specialty salads, soups, pastas, sandwiches, entrées, desserts, and proprietary craft beers.