Jefferies analyst Andy Barish reiterated a Buy rating and $16 price target on El Pollo Loco (NASDAQ: LOCO) following Q2 results, saying the turnaround is working.

Barish commented, "2Q adj. EPS of $0.19 was $0.01 above our/Cons. est as SSS/traffic regained positive and were slightly better than expected. RLM better but will "invest" in new Houston/Dallas markets in 2H. QTD, traffic is trending positive again. '16 SSS/unit guide was reiterated while performance in Houston market is trending slightly below targets. Our '16/17 EPS tweaked to $0.70/$0.71. PT stays at $16; Buy for small-cap turnaround."

For an analyst ratings summary and ratings history on El Pollo Loco click here. For more ratings news on El Pollo Loco click here.

Shares of El Pollo Loco closed at $13.08 yesterday.