First Watch Restaurant price target lowered to $21 from $24 at Stephens

Stephens lowered the firm’s price target on First Watch Restaurant (FWRG) to $21 from $24 and keeps an Overweight rating on the shares. The company reported Q4 comps in-line with its pre-release at ICR, though traffic and mix headwinds flowed through to a softer EBITDA result than expected, the analyst tells investors in a research note. The firm adds however that it still sees First Watch as being “well-positioned relative to peers” as unit growth remains a durable growth driver, new store economics continue to screen well, and the ramp in paid and digital marketing alongside the core menu rollout provides a clear path to improving awareness and better traffic.