KeyBanc Starts Ignite Restaurant Group (IRG) at Buy, $22 Price Target

Article Stock Quotes (1) Comments (0)

KeyBanc initiated coverage on shares of Ignite Restaurant Group (NASDAQ: IRG) with a Buy rating and $22 price target Wednesday afternoon.

The firm offers the following points for its bull thesis:

• Joe's Crab Shack's attractive unit economics and domestic potential support 10% annual unit growth for several years;
  
• new units have outperformed expectations (AUVs of at least $3.9 million vs. $3.0 million system average) and could be a source of revenue and EPS upside;
  
• same-restaurant sales should remain positive as the brand benefits from new product introductions supported by greater advertising; and
  
• commodity inflation is moderating as crab prices have improved in recent months.

With Ignite shares closing at $17.83 Wednesday afternoon, KeyBanc's new price target implies potential upside of about 23 percent.

For an analyst ratings summary and ratings history on Ignite Restaurant Group click here. For more ratings news on Ignite Restaurant Group click here.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: Michael Kors (KORS) Under-Appreciated; Canaccord Genuity Starts at Buy
• UPDATE: Wedbush Downgrades XenoPort (XNPT) to Neutral
• Ladenburg Thalmann Starts EV Energy Partners (EVEP) at Buy

Create E-mail Alert Related Categories

New Coverage

Related Entities

KeyBanc

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?