BUY OR SELL-Can Tim Hortons meet its 2009 sales forecast?

* Tim Hortons shares down 7 percent in 3 sessions

* Some doubt company can meet same-store sales outlook

* Compelling valuation leads analyst to recommend stock

By Scott Anderson

TORONTO, May 11 (Reuters) - Tim Hortons Inc (THI.TO: Quote, Profile, Research), the Canadian coffee and doughnut retailer, released results last week that matched expectations, but its shares have fallen almost 7 percent since then on doubts it can meet its lofty 2009 sales forecast.

When the company reported a 7.5 percent jump in first-quarter profit last week, it said sales for stores opened at least a year rose 3.4 percent in Canada and 3.2 percent in the United States. That was in line with its forecast of same-store sales in the range of 3 percent to 5 percent for the year.

Even so, doubts have emerged on whether it can sustain those levels given expectations of weak volumes, stiff competition and a tepid North American economy.

Will Tim Hortons shares languish or fall further, or will the company find a way to add a jolt to its performance?

CHALLENGED GROWTH PROFILE