Wingstop (WING – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Peter Saleh from BTIG reiterated a Buy rating on the stock and has a $350.00 price target.
Peter Saleh has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. He acknowledges that Wingstop’s shares have seen a significant decline, which he considers to be an overreaction, thus presenting a buying opportunity at current levels. Although he has adjusted the full-year same-store sales estimates to the lower end of management’s guidance, he remains optimistic about the company’s ability to attract more customers through advertising, menu innovation, and digital tools.
Furthermore, the recent sale of Wingstop’s UK master franchise resulted in a substantial gain, showcasing the company’s strategic financial maneuvers. Additionally, the introduction of a new AI-enabled kitchen platform is expected to enhance efficiency and potentially boost sales, particularly during lunch hours. Saleh’s valuation of Wingstop is based on a strong future EBITDA estimate, reflecting confidence in the company’s long-term growth prospects.
In another report released on March 18, Robert W. Baird also maintained a Buy rating on the stock with a $375.00 price target.