Piper Jaffray Remains Bullish on Fogo de Chao (FOGO) Following 2Q Miss - PT to $16
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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."
Shares of Fogo de Chao closed at $14.11 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesPiper Jaffray, Earnings
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