Oppenheimer keeps it simple on BJ's Restaurants (NASDAQ:BJRI), saying the +40% drop in share price since August is overdone.
"We believe this reflects overblown fears of negative earnings revisions and tough SSS comparisons, yet we see a path to achieve estimates through '20E. Given strong new unit volumes, shares under-appreciate the brand's unit growth and cash flow power of current assets," advises the firm.
"Our math suggests steady-state FCF near $5.45/sh or a 13% yield, a dynamic that could attract potential acquirers if shares remain depressed."
Oppy lifts BJ's to an Outperform rating. The consensus sell-side rating on BJRI is also Outperform, while the Quant rating is lagging at Neutral.
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