Kura Sushi USA Inc. (KRUS) PT Raised to $99 as Piper Sandler Makes Model Changes

Piper Sandler analyst Brian Mullan raised the price target on Kura Sushi USA Inc. (NASDAQ: KRUS) to $99.00 (from $98.00) while maintaining a Neutral rating.

The analyst said: "It’s been a volatile 2024 thus far for KRUS from a share price perspective; starting the year at ~$76, hitting a closing high of ~$120 in March, hitting a low of ~$49 in August, and now currently back up to ~$97 as of this writing. In addition to the choppy macro backdrop, at issue has been decelerating SSS trends and related questions around the variability of said trend by region; with the topic of cannibalization first introduced on the July earnings call. While the stock has recovered nicely from the summer lows and last month’s primary equity raise was certainly successful, the cannibalization issue remains front and center to the story from a “debate” perspective.

Finally, we tweaked some of our near-term SSS estimates (higher) and our new store productivity estimates (lower) across the Fiscal 2025e & Fiscal 2026e time periods. As a result of all of these model changes, our DCF-based price target goes to $99, which is up from $98 prior. As referenced above, with this note, we reaffirm our Neutral rating on KRUS."

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