El Pollo Loco (LOCO) PT Raised to $23 at Jefferies Ahead of LA Reopening
- Wall Street surges to all-time closing high on earnings, economic revival
- Was Intel's (INTC) Second Quarter a Speedbump or Inflection?
- Twitter (TWTR) Gains After Beating Q2 Estimates, Analysts Raise PTs as Brand Recovery Accelerates
- U.S. dollar on track for second week of gains; Fed meeting in focus
- Snap (SNAP) Surges 17% After Smashing Q2 Views Across the Board to Yield a Dozen Price Target Hikes
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Jefferies analyst Andy Barish raised the price target on El Pollo Loco (NASDAQ: LOCO) to $23.00 (from $22.00) after the company preannounced 4Q EPS of $0.16, above expectations on lower G&A. While margins were weighed down by greater LA restrictions, consumer impact and costs, headwinds are fading ahead of LA opening in the next 1-2 weeks.
The analyst believes the LT growth opportunity is underappreciated with good visibility in SSS drivers, and 5%+ unit growth feasible in '23 and beyond. He maintained a Buy rating, stating "4Q preannounce SSS -0.2% (Co -3.0%, Franchised 1.8%) as greater LA SSS -2.1% given closed dining rooms, which represent 60% of system units and remain closed now but are expected to reopen at limited capacity in next 1-2 weeks, while non-LA markets saw SSS 3.3%. Importantly, 1Q-to-date SSS through Feb 24 was -2.6% (Co -6.8%, Fran 0.5%) with systemwide SSS -5.6% in greater LA and 2.7% in non-LA markets. We think the new stimulus checks and unemployment benefits will disproportionally help LA residents given unemployment there well above the nat'l avg and brand skew to Hispanics hurt by Covid, as well as more open dining rooms vs previous stimulus."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freeport-McMoRan (FCX) Outlook is Better Than Perceived - Jefferies
- Cummins India (KKC:IN) PT Raised to INR1,050 at Kotak
- ICICI Bank (ICICIBC:IN) (IBN) PT Raised to INR825 at Emkay Global
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!