USA: Granite City Food & Brewery "strong buy," target price reduced

Analyst Mark E Smith of Feltl and Company reiterates his "strong buy" rating on Granite City Food & Brewery Ltd, according to Newratings, August 10. The target price has been reduced from $8 to $7.

In a research note dated August 7, the analyst mentions that the company has posted disappointing 2Q07 results. Granite City Food & Brewery’s long-term growth prospects, however, are still in place and the company is likely to achieve 39% and 54% revenue growth in 2007 and 2008, respectively, the analyst says. Robust demand for the company’s restaurants, high unit growth and operating leverage would result in better profitability in 2009, Feltl and Company adds.

10 August, 2007