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Deutsche Raises Price Target on Buffalo Wild Wings (BWLD) Following Strong Upside

February 8, 2012 12:05 PM EST
BWLD Hot Sheet
Rating Summary:
    6 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 9 | New: 35
Deutsche Bank is reiterating its Buy rating on shares of Buffalo Wild Wings, Inc. (NASDAQ: BWLD) following solid Q4 results. The firm also raising its price target on the company from $76 to $85.

The company reported strong Q4 results with earnings topping both the Street's and firm's forecasts by a land slide. Management noted the trends are continuing into the first quarter and confirmed its outlook for 20 percent earnings growth in 2012.

During the conference call, the company announced potential future growth avenues beyond the core concept and highlighted the company would be working on cutting costs.

An analyst at Deutsche comments, "In terms of wing costs, BWLD conceded that wings will be a significant headwind in 2012 but expressed a high degree of confidence in meeting 20% EPS growth, citing several of the of earnings levers that we highlighted in our 2/1/12 report, including: menu pricing, cost mgmt., traffic growth, the extra wk., and the franchisee acquisition. BWLD also noted that that the earnings flow-through from sales growth should improve as stores opened in newer markets begin to mature."

For Q1, the firm forecasts EPS of $0.97 and raised its FY12 estimate from $3.20 to $3.30.

For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $70.19 yesterday, with a 52 week range of $46.79-$71.22.


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