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Non-Tech : Boston Market (BOSTQ)

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To: IN_GOD_I_TRUST who wrote (196)	8/26/1997 9:59:00 AM
From: William, III	of 1567

Robert M. Cohen Initiates Coverage of Boston Chicken; Analyst Sets Speculative Buy Rating and $34 Price Target August 26, 1997 09:25 AM GREAT NECK, N.Y., Aug. 26 /PRNewswire/ -- Robert M. Cohen & Co. initiated coverage of Boston Chicken BOST with a speculative buy recommendation and set an 18-month price target of $34 per share. Robert M. Cohen analyst Keith R. Bossey said that while the company has stumbled from its meteoric rise and fallen into disfavor on Wall Street, forward earnings growth projections of near 35% make the current valuation very attractive. "Boston Chicken trades at just 11x our 1997 estimates and at a paltry 8.2x our 1998 estimates. Although earnings growth should not be re-attained until at least the fourth quarter, any signs of positive business momentum will expand these multiples. In comparison, the S&P 500 trades at 25.4x earnings and restaurant stocks trade at over 23.7x earnings," Bossey said. Bossey noted that two strategy changes by management should support future earnings momentum. The company has focused on the strong concept of advertising its meals as a home meal replacement, and management's decision to return to and accentuate this concept puts the company on more solid footing. In addition, the announcement of an expansion slow down (not discontinuation) will allow management to concentrate on building profitability at the franchisee level. SOURCE Robert M. Cohen & Co.

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