UPDATE: Oppenheimer Starts Franchise Group Inc. (FRG) at Outperform, $50 PT
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Oppenheimer analyst Ian Zaffino initiates coverage on Franchise Group Inc. (NASDAQ: FRG) with an Outperform rating and a price target of $50.00.
The analyst commented, "With double-digit EBITDA growth, a double-digit free cash flow yield and a substantial opportunity to increase its mix of franchised locations, Franchise Group represents an interesting investment opportunity. The company was founded in July 2019 with the acquisition of Buddy’s, and now operates brands including, American Freight, The Vitamin Shoppe, Pet Supplies Plus (PSP) and Buddy’s Home Furnishings. FRG boasts ~1.9K stores, of which 90% could ultimately be franchised, vs. ~30% today. Further, each brand has its own unique drivers of value including, organic growth, store count expansion, ecommerce and cost efficiencies. We initiate coverage of Franchise Group with an Outperform rating and a $50 price target."
Shares of Franchise Group Inc. closed at $36.08 yesterday.
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