Sonic Corp (SONC): Too Cheap To Ignore - Oppenheimer
- Wall Street flat as telecom gains fail to counter oil drop
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Oppenheimer analyst, Brian Bittner, reiterated his Outperform rating on shares of Sonic (NASDAQ: SONC) noting that the stock is under loved and under $30. The analyst is attracted to what he sees as a heavily discounted 18x P/E, 10x EBITDA and 7% FCF yield.
He sees 3 reasons to get aggressive on the name:
1) his analysis suggests minimized risk to EPS estimates through '17E
2) near-term SSS expectations are low (flattish), and it's track record of industry outperformance remains appealing
3) shifting to 95%-franchised without sacrificing EPS is under-appreciated
4) cash ($100M) and FCF ($80M) could repurchase 12% of shares, prior to more leverage
No change to the price target of $40.00
Shares of Sonic closed at $28.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- Oppenheimer Raises Price Target on Bob Evans Farms (BOBE) Following 2Q EPS Beat
- BMO Capital Raises Price Target on Gildan Activewear (GIL) Following Investor Meetings
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!