Cheesecake Factory price target raised to $36 from $32 at UBS

UBS raised the firm’s price target on Cheesecake Factory (CAKE) to $36 from $32 and keeps a Sell rating on the shares. The firm expects Q3 results on October 29 will be largely in line with expectations, including positive same-store sales and moderate margin expansion, the analyst tells investors in a research note. Despite reports of an activist investor proposal, UBS views a spin off North Italia, Flower Child and Culinary Dropout brands as unlikely in the near-term given it’s likely too early in each brand’s life cycle, with overhead cost pressures and market cap, which may be too small to be relevant.