In the wake of Panera Bread’s (PNRA) recent announcement that Europe’s JAB Holding has agreed to acquire the company in a transaction valued at approximately $7.5B, Maxim analyst Stephen Anderson argues that he still views Dunkin’ Brands (DNKN) as “one of the strongest candidates” for a potential acquisition in the Quick Service restaurant space. This comes a few days after his peer at Longbow told investors he does not expect the company to be acquired anytime soon. Meanwhile, RBC Capital analyst David Palmer upgraded Dunkin’ Donuts’ parent to Outperform, as he anticipates a “more profitable system.”

STRONG BUYOUT CANDIDATE: In a research note to investors this morning, Maxim’s Anderson said he still views Dunkin’ Brands as “one of the strongest candidates” for a potential acquisition in the Quick Service restaurant space, even after JAB Holdings’ deal for Panera takes it out of the running for now. Moreover, the analyst argued that he sees comp growth and geographic expansion opportunities for Dunkin’ Donuts and Baskin-Robbins in both the U.S. and overseas and sees a potentially lucrative licensing business for the company as an “increasingly important attribute.” Dunkin’ Brands’ best likelihood for M&A will come from a multinational, multi-concept franchise operator, such as Yum! Brands (YUM), Anderson contended, adding that he believes the latter is seeking franchise-driven growth concepts to complement its existing brand portfolio. The analyst estimates a range of $70-$75 for a potential takeout, and assigns a 25% likelihood of a possible acquisition in the next 12 months. Anderson acknowledged that McDonald’s (MCD) has recently gained market share through beverage discounting, but noted that Dunkin’ Brands held its own during the quarter with limited menu price increases. He reiterated a Buy rating on the stock ahead of quarterly results and raised his price target on Dunkin’ to $64 from $61.