UPDATE: Stephens Upgrades Denny's Corporation (DENN) to Overweight

March 12, 2021 6:06 AM EST
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Price: $14.64 --0%

Rating Summary:
    10 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 19
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(Updated - March 12, 2021 6:21 AM EST)

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."

For an analyst ratings summary and ratings history on Denny's Corporation click here. For more ratings news on Denny's Corporation click here.

Shares of Denny's Corporation closed at $18.50 yesterday.

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