Piper Jaffray Starts Fogo de Chao (FOGO) at Overweight

Piper Jaffray initiates coverage on Fogo de Chao (NASDAQ: FOGO) with a Overweight rating and a price target of $27.00.

Analyst Nicole Miller Regan commented, "We are initiating coverage of FOGO shares with an Overweight rating and $27 price target based on 10x FY16E Core Business EBITDA + $10/Share New Unit Pipeline Value. Our favorable opinion is based on the Fogo de Chao positioning as an iconic global Brazilian steakhouse which, from a stock perspective, hits the growth hurdle with its 15%-20% pace of new restaurant development. We project 18% net new unit growth and modest same-store sales. From a valuation perspective, we note each 1x multiple turn on EBITDA = $2/share. Potential catalysts include continued positive same-store sales and accelerated development while execution is a key risk."

For an analyst ratings summary and ratings history on Fogo de Chao click here. For more ratings news on Fogo de Chao click here.

Shares of Fogo de Chao closed at $23.44 yesterday.

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