Barclays Maintains an 'Overweight' on Wendy's (WEN); Momentum Turning (Favorably)...Bullish into '12 as QSR Brand Leadership Returns
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Price: $8.81 -1.34%
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on Wendy's (NYSE: WEN) price target of $6.00.
Barclays analyst says, "Momentum is turning from a top-line perspective, and we expect such to continueinto 2012, which should be the focus for investors. Unfortunately, with expectations high (and shares strong) heading into the release, stock outperformance proved challenging today, especially as 3Q results were 'only' in line, 2011 guidance was 'only' reiterated, and initial 2012 guidance was not offered. We believe investors are still valuing the shares based on flat EBITDA growth in the 2011 'transition year'. With a new CEO to re-energize the brand, the sale of Arby's (and related distraction) complete, and the recent comp/traffic momentum at Wendy's, we remain bullish and are buyers here. Importantly, in our view, Wendy's has growth potential above peersand yet is trading at a large discount to such peers... currently ~7.5x 2012E EBITDAwith peers at ~8.5x+."
For an analyst ratings summary and ratings history on Wendy\'s click here. For more ratings news on Wendy\'s click here.
Shares of Wendy\'s closed at $5.26 yesterday.
Barclays analyst says, "Momentum is turning from a top-line perspective, and we expect such to continueinto 2012, which should be the focus for investors. Unfortunately, with expectations high (and shares strong) heading into the release, stock outperformance proved challenging today, especially as 3Q results were 'only' in line, 2011 guidance was 'only' reiterated, and initial 2012 guidance was not offered. We believe investors are still valuing the shares based on flat EBITDA growth in the 2011 'transition year'. With a new CEO to re-energize the brand, the sale of Arby's (and related distraction) complete, and the recent comp/traffic momentum at Wendy's, we remain bullish and are buyers here. Importantly, in our view, Wendy's has growth potential above peersand yet is trading at a large discount to such peers... currently ~7.5x 2012E EBITDAwith peers at ~8.5x+."
For an analyst ratings summary and ratings history on Wendy\'s click here. For more ratings news on Wendy\'s click here.
Shares of Wendy\'s closed at $5.26 yesterday.
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