Panera Has Analysts Eating Out of the Palm of its Hand

Panera Bread Company (NASDAQ: PNRA) received more positive analyst coverage Friday morning.

Bernstein initiated coverage with an Outperform and $190 price target. This follows an upgrade to Outperform from BMO Capital with a $190 price target citing compelling valuation.

On March 7, Jefferies maintained its Buy rating and raised its price target from $185 to $190. All of this came after the company reported a 34 percent jump in profits and bullish forward guidance.

Panera, along with restaurants like Chipotle (NYSE: CMG) are benefitting from their fast casual models.

Diners don’t have to pay a higher price along with tip as they would at places like Olive Garden (NYSE: DRI), but don’t have to settle for fast food restaurants like McDonald's (NYSE: MCD) or Wendy’s. (NASDAQ: WEN).

This has placed fast casual eateries in the sweet spot of not too fancy yet nicer than a drive thru and, “you want fries with that?”

This price target represents 16 percent upside potential from current levels. An RSI of 53 suggests the stock isn’t overbought at these levels.