Piper Jaffray Remains Bullish on Sonic Corp (SONC) Following 3Q15 Results

Piper Jaffray reiterates an Overweight rating and $42.00 price target on Sonic (NASDAQ: SONC) following fiscal 3Q15 results. Total revenues came in at $164.7 million. Third quarter operating earnings came in at $0.36 per share, in-line with street's expectations. SONC increased its expectations for FY15 EPS to $1.06- $1.08 (vs. $1.04-$1.06).

Analyst Nicole Regan commented, "We are buyers of SONC shares following the company's report of fiscal 3Q15 results. Although shares are indicated down in the after market, likely driven by the report of in-line results and only slight upside to FY15 expectations, we remain confident in the ability of the company's portfolio of sales driving initiatives to deliver upside to sales, earnings, and EBITDA in FY16 and beyond. Quarter-to-date sales trends for 4Q15 were not quantified however we feel comfortable with our +5.0% expectation. We are reiterating our Overweight rating and $42 price target, based on 15x our FY16E EV/ EBITDA estimate. From a sensitivity perspective we note a 1% change in same-store sales equates to $0.04 in incremental EPS (on a full year basis) and that every 1x turn in EBITDA multiple equates to ~$3/share for SONC."

For an analyst ratings summary and ratings history on Sonic click here. For more ratings news on Sonic click here.

Shares of Sonic closed at $34.22 yesterday.

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