UPDATE: Barclays Starts Arcos Dorados Holdings (ARCO) at Overweight

(Updated - September 27, 2022 4:40 AM EDT)

Barclays analyst Antonio Hernandez initiates coverage on Arcos Dorados Holdings (NYSE: ARCO) with a Overweight rating and a price target of $9.00.

The analyst comments "Current valuation level represents an attractive entry point: At 7.6x EV/ LTM EBITDA, Arcos is trading at a steep discount of 25% vs its 5-year average, and of c.50% vs peers. With our DCF methodology and PT, the implied c.7x EV/FY23 EBITDA multiple continues to reflect a discount vs peers —given lower margins and the more volatile LatAm exposure— but reflects a solid c.30% upside potential as the company’s strategies continue to kick in and lead to further market share gains."

For an analyst ratings summary and ratings history on Arcos Dorados Holdings click here. For more ratings news on Arcos Dorados Holdings click here.

Shares of Arcos Dorados Holdings closed at $6.75 yesterday.

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