William Blair analyst Sharon Zackfia has maintained their bullish stance on PTLO stock, giving a Buy rating on September 11.
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Sharon Zackfia’s rating is based on a combination of factors that highlight Portillo’s potential for growth despite recent challenges. The departure of CEO Michael Osanloo, who played a pivotal role in expanding the brand and improving employee satisfaction, marks a transitional phase for the company. With Chairman Mike Miles stepping in as interim CEO, the company is expected to maintain its strategic course while searching for a new leader.
Despite the current “show-me” state of Portillo’s stock, Zackfia sees promising signs of the brand’s adaptability in new markets like Arizona and Florida. The anticipated development of a new unit design is expected to enhance returns in the future. At its current valuation, Portillo’s stock presents a compelling opportunity, although risks such as geographic expansion challenges and potential margin contraction remain.
Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Lululemon Athletica, and Royal Caribbean. According to TipRanks, Zackfia has an average return of 8.9% and a 48.31% success rate on recommended stocks.
In another report released on September 11, Jefferies also maintained a Buy rating on the stock with a $10.00 price target.