DA Davidson Raises Price Target & Estimates on Buffalo Wild Wings (BWLD), NFL Lockout Brings Possible Buying Opportunity

DA Davidson is reiterating its Buy rating on shares of Buffalo Wild Wings, Inc. (NASDAQ: BWLD) and is raising its price target from $70 to $80 following its Q1 results.

The company reported its Q1 results with an EPS growth of 40% to $0.81 and revenue growth of 19.6% to $182.2 million. Management notes that favorable wing prices was a key driver in gross margin improvement with costs being down 32% Y/Y to $1.22 per pound. The company experienced an average price of $1.02 per pound for the first two months of the quarter. The firm estimates that BWLD’s wing costs will rise to $1.40 for Q4 and average $1.45 for 2012.

DA Davidson is raising its 2011 and 2012 EPS estimates from $2.60 and $3.05 to $2.66 and $3.20. The firm also sees the NFL lockout as a possible buying opportunity and reports that, "although we expect a resolution, a shortened season will likely be viewed as a one-time event and might encourage weaker competitors out of business."

For more ratings news on Buffalo Wild Wings, Inc. click here and for the rating history of Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $60.44 yesterday.

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