Oppenheimer sees deep value in BJ's Restaurants

|About: BJ's Restaurants, Inc. (BJRI)|By:, SA News Editor

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.

Subscribe for full text news in your inbox