California Pizza Kitchen, Inc., (CPKI)

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KeyBanc Upgrades California Pizza Kitchen (CPKI) to Buy
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May 7, 2008 9:03 AM EDT

KeyBanc upgrades California Pizza Kitchen (Nasdaq: CPKI) from Hold to Buy and sets a $19 price target.

The firm sees upside in shares of California Pizza Kitchen over the coming months and gives several reasons for the upgrade. KeyBanc believes:

* CPK's recently introduced "bounce back" promotion represents a near-term catalyst for improving same store sales
* that CPK will likely see a positive sales impact from the distribution of tax rebate checks over the next few weeks
* given Knapp Track statistics, we believe that casual dining sales trends are beginning to stabilize
* California Pizza Kitchen will see earnings accelerate in 2H08 given easier year-over-year SSS and commodity cost comparisons and minimal unit growth
* strong growth will improve Kraft business (at least 20% growth in 2008)
* CPK has significant unit growth prospects over the long term both on a domestic and international basis.


KeyBanc notes that its $19 price target on California Pizza Kitchen implies upside of about 21% from current levels.

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]

http://www.streetinsider.com/Upgrades/KeyBanc+Upgrades+California+Pizza+Kitchen+(CPKI)+to+Buy/3618042.html