Stifel Starts First Watch (FWRG) at Buy

Stifel analyst Chris O\'Cull initiates coverage on First Watch (NASDAQ: FWRG) with a Buy rating and a price target of $25.00.

The analyst commented, "We are initiating coverage of First Watch Restaurant Group, Inc. (FWRG) with a Buy rating and a $25 12-month target price. First Watch has expanded its company-owned store base by 13% CAGR since 2016, and the chain had posted 28 consecutive quarters of SRS gains (averaging ~6%) before the pandemic. With SRS running well above pre-pandemic levels and significant investments for expansion already made, we believe First Watch is on solid footing to deliver healthy sales and earnings growth for several years. We consider the risk/reward appealing at current levels as premium valuation metrics seem justified by the concept's unitlevel returns, relatively open-ended development opportunity, and healthy pace of development. We project low double-digit unit expansion plus 3.5% SRS gains to produce mid-teens annual revenue and adjusted EBITDA growth."

For an analyst ratings summary and ratings history on First Watch click here. For more ratings news on First Watch click here.

Shares of First Watch closed at $21.48 yesterday.

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