Brian Mullan, an analyst from Piper Sandler, has initiated a new Hold rating on The ONE Group Hospitality (STKS).
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Brian Mullan has given his Hold rating due to a combination of factors impacting The ONE Group Hospitality. The company’s strategic acquisition of Benihana presents potential growth opportunities, as Benihana is a significant player in the Full Service Asian restaurant segment. However, the integration of this acquisition and the performance of the Grill Concept Brands, such as Kona Grill and RA Sushi, are areas of concern that need monitoring.
Additionally, while the STK Steakhouse brand is expanding its presence in the Full Service Steak category, recent sales trends have been challenging. Despite some positive traffic developments, the overall risk-reward scenario appears balanced. These factors, combined with a cautious outlook on macroeconomic conditions and inflation, contribute to the Hold rating with a price target of $6.
Based on the recent corporate insider activity of 54 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 STKS in relation to earlier this year.