In a report released on August 8, Brian Harbour from Morgan Stanley maintained a Sell rating on Wendy’s, with a price target of $10.00.
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Brian Harbour has given his Sell rating due to a combination of factors impacting Wendy’s stock performance. The stock has experienced a significant decline year-to-date, and despite a better-than-expected second quarter bottom line, the overall outlook remains cautious. The management turnover and the company’s inability to quickly address ongoing issues contribute to this conservative stance.
Additionally, competitive pressures from McDonald’s, which is aggressively capturing market share, further strain Wendy’s position. The company’s guidance suggests little change in performance, and while there may not be much downside to the current price target, the potential for further risk into the next year remains. With these challenges, Wendy’s is seen as relatively more vulnerable compared to its peers, justifying the Sell rating and a price target adjustment to $10.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WEN in relation to earlier this year.