UPDATE: Bank of America Initiates Texas Roadhouse at Buy on Significant Growth Prospects

In a report published on Tuesday, Bank of America analyst Andrew M. Charles initiated coverage on Texas Roadhouse (NASDAQ: TXRH) with a Buy rating and a price objective of $28.

In the report, Bank of America stated, "We are valuing TXRH shares primarily on a relative basis to mature casual dining comparables. Texas Roadhouse is a well- established brand with nearly 400 restaurants but has growth attributes such as a high single digit expansion rate, an impressive same store sales track record and solid ROIC versus peers that we believe merit growth stock consideration. These growth characteristics support our PEG approach to valuation."

Texas Roadhouse closed on Tuesday at $24.30.