Usually, when an analyst steps in on a stock’s side, that stock gains as investors sense success. However, new analyst love for BJ’s Restaurants (NASDAQ:BJRI) only went so far, as shares of the restaurant chain slipped nearly 3% in Monday afternoon’s trading session.
The recent influx of activist investors targeting BJ’s hasn’t been lost on Hedgeye, which added the chain as a new “long idea” to its roster. Hedgeye, via analyst Howard Penney, noted that insiders only hold about 3.1% of outstanding stock. However, the company just added a new board member.
That leaves a lot of room for activists to step in and could ultimately yield a situation with “minimal risk with substantial potential for reward.” Further, with a new board member in place, that suggests the company is “poised for influence by these external forces.”
A Charm Offensive In Progress
Meanwhile, BJ’s Restaurant is working on its public perception. A new location is coming to Brookfield, Wisconsin, which is already building some anticipation. BJ’s is partnering with Hav A Sole to bring shoes to needy kids. The partnership features BJ’s sponsoring an annual benefit for Hav A Sole known as “Dream Out Loud,” which should go a long way toward getting kids some new shoes.
What Is the Price Prediction for BJRI Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BJRI stock based on five Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 26.63% rally in its share price over the past year, the average BJRI price target of $39.14 per share implies 8.03% upside potential.
