Wingstop risk/reward now more balanced, Jefferies sees diminishing overhang from 2H SSS deceleration
Jefferies analysts raised Wingstop (NASDAQ:WING) to hold from Underperform, lifting the price target to $170 from $150 per share in a note Tuesday.
The analysts explained the firm is upgrading the stock as its risk/reward now appears to be more balanced.
«We upgrade WING to Hold as we see diminishing overhang from 2H SSS deceleration with expectations reflecting a more realistic, conservative bar,» they wrote.
«We recently met with CFO Kaleida and came away incrementally more confident around the organic/platform opportunities that should render a MSD% run-rate SSS achievable, with tailwinds from '22 drivers also likely contributing to upside near term.»
The analysts also noted that wing cost inflation is well understood and that multiple opportunities for offset exist. In addition, they see little risk to the 10% or more unit growth as the global pipeline continues to build.
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