Buy California Pizza Kitchen (CPKI) on Weakness -Piper Jaffray
March 28, 2008 9:47 AM EDT
Piper Jaffray issued a research report this morning suggesting investors use yesterday's weakness in shares of California Pizza Kitchen (Nasdaq: CPKI) as a buying opportunity. The firm has a Buy rating and $16 price target on CPKI.
The firm notes that yesterday's 5% sell-off was the result of rating downgrades related to concerns over exposure to the California and Florida markets. While Piper does admit that a large amount of CPKI's business comes from these two states (~43% of operations), it believes that much of this market weakness is already priced into the Company's guidance.
On a longer-term basis, Piper said it remains "convinced that California Pizza Kitchen is a fundamentally healthy, self funding growth concept."
California Pizza Kitchen, Inc., together with its subsidiaries, engages in the ownership, operation, licensing, and franchising of a chain of casual dining restaurants in the United States and internationally. [BCS]
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