Wedbush Raises Price Target on Del Taco Restaurants (TACO) to $17 Following Strong 3Q
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Wedbush reiterated an Outperform rating on Del Taco Restaurants (NASDAQ: TACO), and raised the price target to $17.00 (from $15.00), following the company's 3Q earnings report. EPS of $0.13 was a penny above consensus, but higher G&A and tax rate limited flow-through. SSS growth of 7.1% at co-owned and 6.2% franchised were well above 4.0% and 3.3% consensus. Adjusted EBITDA guidance was increased to $69-70M from $67.5-70M previously, on SSS growth. FY16 EPS guidance of $0.53-0.56 was reiterated.
Analyst Nick Setyan commented, "We believe there is a disconnect between Del Taco's category-leading fundamentals and its category-trailing valuation. We believe the company's current discount to QSR peers is poised to narrow as management continues to execute towards annual guidance, and as investor awareness of TACO's compelling fundamentals increases."
Shares of Del Taco Restaurants closed at $12.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- Mizuho Securities Adjusts Estimates Following Gap, Inc. (GPS) Comp Miss
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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!