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Actionable news in RRGB: Red Robin Gourmet Burgers, Inc.,

Red Robin's Wings Clipped By Bank Of America Downgrade

Red Robin's Wings Clipped|Downgrade To Underperform|Bank Of America

Shares of Red Robin Gourmet Burgers, Inc. RRGB 0.41% traded down on Tuesday after Bank of America Merrill Lynch downgraded the stock from Buy to Underperform rating. Analyst Joseph Buckley has a target price of $50 on the company's stock.

The comments come in the wake of an earnings miss in the first quarter. Street analysts have reduced their EPS estimates from $0.56 90 days ago to $0.50 30 days back.

The brokerage sees Red Robin Gourmet facing sales challenges in the near term. As a result, the analyst sees risk to the earnings projections. Currently, Buckley expects the company to deliver an EPS of $0.42, which is $0.08 lower than the consensus estimates.

In a research note, the analyst said, "Low valuation is a risk to our call, but low margins leave the company exposed to sharp corrections if sales remain weak."

At time of writing, the stock had dropped 3.69 percent on the day and was seen trading at $47.03.

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Sep 2016Bank of AmericaDowngradesBuyUnderperform
Aug 2016Canaccord GenuityInitiates Coverage onHold
Aug 2016Standpoint ResearchInitiates Coverage onBuy

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