Citi Assumes Buffalo Wild Wings, Inc. (BWLD) at Neutral

Citi assumes coverage on Buffalo Wild Wings, Inc. (NASDAQ: BWLD) with a Neutral rating and a price target of $197.00 (from $170).

Analyst Gregory Badishkanian sees solid long-term domestic growth opportunities with 20% EPS growth over the next several years, driven by 3% SSS growth and nearly 30% unit growth. However, while the company has solid long-term opportunities, they believe the stock's relatively high forward P/E multiple has limited upside at this point.

The analyst said they believe BWLD deserves to trade at a discount of 30% (no change) relative to its competitors. "BWLD has traded between a 10% discount and a 40% discount to its peers with a median 30% discount over the last 5 years based on its PEG ratio," the analyst comments. "Over the next few years, we expect BWLD to have lower average net profit margins with lower ROIC relative to its peer group. This is slightly offset by the company's more favorable debt profile and balance sheet."

For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $185.75 yesterday.

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