Analyst Jon Tower from Citi maintained a Hold rating on Kura Sushi USA (KRUS – Research Report) and decreased the price target to $47.00 from $71.00.
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Jon Tower has given his Hold rating due to a combination of factors impacting Kura Sushi USA’s outlook. The company is on track with its unit growth and is making progress with initiatives like new ordering technology and a reservation system. However, uncertainties surrounding tariffs create challenges in forecasting, as both costs and demand impacts remain unclear. This uncertainty lowers confidence in financial modeling.
Additionally, while Kura Sushi USA has a strong cash position, negative free cash flow is a concern for valuation. The company could benefit from scale advantages against independent sushi players, but immediate impacts from tariffs and labor pressures, including wage inflation, present risks. These factors contribute to the adjusted earnings estimates and price target, reflecting limited visibility into future financial performance.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KRUS in relation to earlier this year.