KeyBanc Starts Ignite Restaurant Group (IRG) at Buy, $22 Price Target

KeyBanc initiated coverage on shares of Ignite Restaurant Group (NASDAQ: IRG) with a Buy rating and $22 price target Wednesday afternoon.

The firm offers the following points for its bull thesis:

• Joe's Crab Shack's attractive unit economics and domestic potential support 10% annual unit growth for several years;
  
• new units have outperformed expectations (AUVs of at least $3.9 million vs. $3.0 million system average) and could be a source of revenue and EPS upside;
  
• same-restaurant sales should remain positive as the brand benefits from new product introductions supported by greater advertising; and
  
• commodity inflation is moderating as crab prices have improved in recent months.

With Ignite shares closing at $17.83 Wednesday afternoon, KeyBanc's new price target implies potential upside of about 23 percent.

For an analyst ratings summary and ratings history on Ignite Restaurant Group click here. For more ratings news on Ignite Restaurant Group click here.

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