DA Davidson starts Portillo’s at Neutral on lack of visibility toward inflection

As previously reported, DA Davidson initiated coverage of Portillo’s (PTLO) with a Neutral rating and $5.50 price target Despite impressive customer affinity and extensive multichannel capabilities, Portillo’s financial results have been underwhelming over the past two years, the analyst tells investors in a research note. DA Davidson adds that while a strategic reset can return the company to a healthier growth trajectory, the firm says its estimates are below consensus given a lack of visibility on when a sustainable inflection might occur.