UPDATE: Stephens Upgrades Denny's Corporation (DENN) to Overweight
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Stephens analyst James Rutherford upgraded Denny's Corporation (NASDAQ: DENN) from Equal Weight to Overweight, PT $24.00 (from $19.00).
The analyst comments "We have been on the sidelines on DENN throughout most of the pandemic due to the 25% exposure to California, the relatively smaller off-premise business vs. peers, and the exposure to the heavilyimpacted morning and late-night dayparts. Now that we are nearing the end of the deepest pandemic impacts, it is time to get off the sidelines. DENN trades at the same EV/EBITDA multiple as it did pre-pandemic while the average full-service stock is 22% above its pre-pandemic trading average. Most importantly, consensus AUV estimates on FY22 are among the most conservative in our full-service coverage. We have identified 10 clear catalysts for fundamentals and for this stock to go higher. As a result, we are upgrading DENN from EW to OW and increasing our price target from $19 to $24."
Shares of Denny's Corporation closed at $18.50 yesterday.
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