Analysts Jump on Bloomin' Brands with Strong Buy Ratings

Bloomin’ Brands Inc. (NASDAQ: BLMN) is public again after a private equity-led initial public offering. This is the former Outback Steakhouse parent. The analysts’ quiet period has ended and the ratings are very strong from just about every underwriter.

The company operates restaurants under the names of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s. As of June 30, 2012, it owned and operated 1,253 restaurants. It also has 197 restaurants operating under a franchise or joint venture in 49 states and 21 countries.

The analyst community ratings are as follows (price targets added throughout the morning):

• Buy with $18 target at BofA/ML
• Buy with $17 target at Goldman Sachs
• Buy with $17.50 target at Jefferies
• Overweight at JPMorgan
• Overweight with $17 target at Morgan Stanley
• Outperform with $17 target at Raymond James
• Outperform with $16 to $17 value at Wells Fargo

What is interesting is that Bloomin’ Brands appeared to be a value IPO of sorts. The stock priced at $11.00 per share, under the $13 to $15 price range. It also sold 16 million shares, rather than roughly 21.4 million shares that it hoped to sell.

Shares closed at $14.40 on Friday against a post-IPO range of $11.57 to $14.59. The positive calls are boosting shares by 5% to $15.12 in active premarket trading this Monday.

JON C. OGG