Del Taco Restaurants (TACO): Solid SSS Growth Likely To Be Rewarded - Wedbush
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Wedbush analyst, Nick Setyan, reiterated his Outperform rating on shares of Del Taco Restaurants (NASDAQ: TACO) after recent checks indicate SSS growth is tracking in-line to above 3.7% consensus in Q3. New menu items such as the ‘Del Taco’ are the drivers. Additionally, there seems to be a disconnect between Del Taco’s category-leading fundamentals and its category-trailing valuation.
The analyst is maintaining his 4.0% comp expectation and Q4 comp estimate of 3.0%. "While we assume transactions remain slightly positive in Q4 (management indicated tx already turned positive in Q3), we also assume that menu pricing drops to 2.5% from the current 3.5%, and the ‘Platos’ entrée introduction does not drive positive mix. We believe there is some probability that incremental pricing is taken in Q4, and we believe there is a high degree of likelihood the Platos entrées drive positive mix".
No change to the price target of $15.
Shares of Del Taco Restaurants closed at $11.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alibaba (BABA) PT Raised to $148 at Deutsche Bank
- Halliburton (HAL) PT Lowered to $60 at Credit Suisse; Reiterates Outperform
- UPDATE: Macquarie Downgrades Alliant Energy (LNT) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!