UPDATE: Bank of America Upgrades Cracker Barrel to Neutral on Strong Restaurant Sales

In a report published on Thursday, Bank of America analyst Joseph Buckley upgraded restaurant chain Cracker Barrel (NASDAQ: CBRL) from Underperform to Neutral and raised the price target from $68 to $99.

In the report, Bank of America pointed out, "We had previously viewed Sardar Biglari's almost 20% stake in CBRL as a negative overhang given two failed attempts by the activist investor to gain board seats. But CBRL's offer earlier this year to repurchase his stake flipped this
potential negative into a possible highly accretive positive. Low interest rates and the recent expiration of an expensive swap that significantly reduces CBRL interest expense make the potential repurchase more easily affordable and limit related balance sheet risk."

Cracker Barrel closed on Wednesday at $87.69.