Piper Jaffray: Seafood Chain McCormick & Schmick's is Overweight (MSSR)

Piper Jaffray analyst Nicole Regan reiterated an Overweight rating for restauranteur McCormick & Schmick's (NASDAQ: MSSR).

McCormick's is rolling out a recovery plan that involves a new menu and restaurant redesigns. The new menu should be in place by 3Q10 end, potentially lowering COGS and improving guest satisfaction scores.

The Gulf oil spill is not a concern for McCormick's, says management, because most shrimp is supplied by international producers.

Regan said, "Our $11 price target is based on 8x our 2010E EV/EBITDA estimate, a reasonable multiple given the improving corporate travel/spending trends in addition to a comprehensive recovery plan backed by a solid balance sheet."