Portillo's, Inc (PTLO) PT Lowered to $18 at Stephens

Stephens analyst Jim Salera lowered the price target on Portillo's, Inc (NASDAQ: PTLO) to $18.00 (from $20.00) while maintaining a Overweight rating.

The analyst commented: "PTLO 1Q24 results were below expectations on sales, store-level margins and adj. EBITDA. We believe investors are currently concentrating their portfolios around restaurant operators reporting same-store sales beats driven off positive traffic, as such we would expect PTLO shares to see some continued near-term pressure. That said, we were encouraged by the updated color around reiterated expectations of ~$1 million in build costs removed from the new prototype (expected 4Q24 opening). Additionally, we believe same-store sales should build from the 1Q24 weather driven trough as the company reiterated its confidence around its ability to deliver FY24 comps of +LSD%. We are maintaining our OW(Vol.) rating and moving our price target to $18 (from $20 prior). Our PT implies ~16x our FY24 EBITDA estimates, which would see PTLO's multiple trading in-line with its QSR peers and at a 3 turn discount to the stock's average since its IPO."

You May Also Be Interested In

• Marvell (MRVL) PT Raised to $225 at TD Cowen
• Amylyx Pharmaceuticals inc. (AMLX) PT Raised to $42 at Mizuho
• Pony AI Inc (PONY) PT Lowered to $17 at BofA Securities