Piper Jaffray Remains Bullish on Fogo de Chao (FOGO) Following 2Q Miss - PT to $16

August 10, 2016 8:15 AM EDT
Get Alerts FOGO Hot Sheet
Price: $14.30 +1.78%

Rating Summary:
    3 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
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Piper Jaffray maintained an Overweight rating on Fogo de Chao (NASDAQ: FOGO), and cut the price target to $16.00 (from $18.00), following the company's 2Q earnings report. FOGO reported operating results below expectations including revenues of $69.6 million and earnings of $0.21 per share.

Analyst Nicole Regan commented, "Fogo reported second-quarter results below expectations on lower-than-expected revenues, which included earnings of $0.21 per share and EBITDA of $13.6 million (vs. consensus expectations of $0.25 and $15.5 million, respectively). Despite an ongoing choppy sales environment across the broader industry, the company was able to deliver positive traffic of +0.6% and restaurant-level margins of 29.5% driven by sales volumes and operational strategies. We now project comps to decline MSD% during the 2H16 period,which better reflects lowered guidance overall. We maintain our Overweight rating, while downwardly adjusting our price target to $16 on FOGO shares. On a sensitivity basis we note that each 1x in EBITDA multiple equates to $2/share. We remain positive as it relates to the concept's long-term positioning, unit growth opportunity, and human capital investments."

For an analyst ratings summary and ratings history on Fogo de Chao click here. For more ratings news on Fogo de Chao click here.

Shares of Fogo de Chao closed at $14.11 yesterday.



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