Company description based in calabasas california

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COMPANY DESCRIPTION Based in Calabasas, California, Cheesecake Factory operates a chain of upscale casual dining restaurants and offers a menu of more than 200 items. In addition, it operates a bakery that produces more than 50 varieties of cheesecake and other baked products for the company’s restaurants and other foodservice operators, retailers and distributors. VALUATION Given prospects for modest same-store sales growth and less rapid earnings gains at Cheesecake Factory, we believe that a multiple near that of other casual dining chains is warranted. Applying a peer-average multiple of 20.0 to our revised 2018 EPS estimate, we calculate a fair value near $54, above current prices but not enough to warrant a BUY-rating. Our revised discounted cash flow model also points to a value slightly above current levels. As such, our rating remains HOLD. On May 14, HOLD-rated CAKE closed at $51.92, down $1.64. (John Staszak, CFA, 5/14/18)
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M ARKET D IGEST - 7 - LEIDOS HOLDINGS INC. (NYSE: LDOS, $62.30) ................................................................... BUY LDOS: Looking for a pick-up in sales * LDOS shares have underperformed over the last three months, declining 5% compared to a 1.3% gain for the S&P 500. * The company recently reported 1Q results that once again topped consensus estimates. * We expect revenue growth to pick up in 2018, as the company has restructured its sales force and plans to invest savings from a lower tax rate into sales and marketing. * Our target price of $74 assumes an increase in the P/E multiple, though we expect it to remain below the peer group average. ANALYSIS INVESTMENT THESIS We are reiterating our BUY rating on Leidos Holdings Inc. (NYSE: LDOS), a provider of technology and engineering services to defense, intelligence, homeland security, and healthcare customers. The political backdrop is now favorable for Defense companies, and budgets for 2018 and 2019 have both been set at record levels. Leidos is well positioned to take advantage of spending trends that focus on cybersecurity and data analytics, among other priorities. We view the company’s recent merger with Lockheed Martin’s Information Systems & Global Solutions unit favorably, as it provides scale for more competitive pricing and reduces the company’s dependence on government contracts. The acquired Lockheed business is also providing substantial revenue and cost synergies. On the fundamentals, the stock is trading at 14-times our 2018 EPS forecast, well below the average of 20.0 for peer Aerospace and Defense companies. Our target price is $74. RECENT DEVELOPMENTS LDOS shares have underperformed over the last three months, declining 5% compared to a 1.3% gain for the S&P 500. They have outperformed over the past year, with an increase of 19% compared to a 14% advance for the broad market. The beta on LDOS is 1.86. The company recently posted 1Q results that once again topped consensus EPS expectations. On May 3, Leidos reported that revenue declined 5% to $2.4 billion. The adjusted operating margin rose to 9.7%, up 30 basis points. Adjusted EPS of $1.03 topped the consensus forecast of $1.02 and rose 17% from the prior year. Bookings of $2.5 billion resulted in a book-to-bill ratio
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