PNRA’s share price may have already priced in the estimates we discussed earlier in this series. In this article, we’ll look at analysts’ recommendations and estimated price targets for the company over the next 12 months.
Since the announcement of its expansion plans in its 4Q15 earnings call, PNRA’s share price has been rising. The company’s better-than-expected 1Q16 results and its upward revision of its expected earnings have made analysts raise their price targets for the stock for next 12-months.
Analysts have raised their target estimate to $230 from the earlier consensus estimate of $223.1. On the higher side, John S. Glass of Morgan Stanley has estimated that PNRA’s share price will reach $245. On the lower side, Karen Holthouse of Goldman Sachs has forecast that it will touch $200.
Over the next 12 months, analysts expect the share prices of Panera’s peers Chipotle Mexican Grill (CMG), Shake Shack (SHAK), and Brinker International (EAT) to rise by 9.3%, 7.8%, and 7.5%, respectively.
According to a Bloomberg survey of 27 analysts, no analysts recommended “sells” for Panera Bread’s stock. 51.9% of analysts gave “buy” recommendations on the stock, and 48.1% of analysts gave “hold” recommendations on the stock. As analysts have raised their target prices for PNRA for the next 12 months, the price of the stock could also rise, and vice versa.
A share price that’s lower than its target price doesn’t mean that a stock is an automatic buy. Before investing, you should carefully analyze the various metrics we’ve covered in this series.