USA: Granite City Food & Brewery initiated with “strong buy”

Analyst Mark E Smith of Feltl & Co initiates coverage of Granite City Food & Brewery Ltd with a "strong buy" rating, according to Newratings, July 11. The target price is set to $8.

In a research note, the analyst mentions that the company is in the nascent stages of a high-growth period and has ample scope for generating high unit growth over the forthcoming couple of years. Granite City Food & Brewery’s proprietary brewing process, Fermentus Interuptus, helps the company to deliver high quality standards at low costs, boosting its margins, the analyst says. The company’s revenue growth is estimated at 45% and 52% for 2007 and 2008, respectively, which is likely to be driven mainly by new unit development, Feltl & Co adds.

13 July, 2007