UPDATE: BMO Capital Downgrades Chuy's Holdings (CHUY) to Market Perform
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BMO Capital analyst Andrew Strelzik downgraded Chuy's Holdings (NASDAQ: CHUY) from Outperform to Market Perform with a price target of $42.00.
The analyst comments "We are downgrading CHUY to Mkt, though raise our target to $42. We continue to view long-term fundamentals favorably and expect CHUY to be a prime beneficiary of reopening. However, the investment case for CHUY is less persuasive at current valuation as we believe risk/reward has become more balanced following recent share price outperformance. We apply a higher 12.5x multiple to $60m post-pandemic EBITDA, reflecting potential upside, and more in line with valuation for full-service peers that have similar unit growth rates as what we believe CHUY can achieve post-pandemic."
Shares of Chuy's Holdings closed at $43.95 yesterday.
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