Jefferies Cuts Price Target on Sonic Corp (SONC) to $28 Ahead of 4Q Report
Jefferies maintained a Hold rating on Sonic Corp (NASDAQ: SONC), and cut the price target to $28.00 (from $30.00), ahead of the company's 4Q earnings report. SONC preannounced F4Q system SSS of -2% vs. the consensus of +0.5%, with Company SSS of -3% coming in a bit lighter than Franchise of -1.8%.
Analyst Alexander Slagle commented, "SONC preann F4Q (ended Aug) SSS of -2% (vs Cons +0.5%), with Adj EPS to be $0.43-0.45 (vs Cons $0.48). The SSS miss was driven by weaker-thanexpected traffic, mirroring the softer trends seen across the industry in July & August (as depicted in our MillerPulse SSS data), and continued aggressive competitive activity. Stock likely trades down tomorrow; however, we think investor expectations were likely a bit lower than consensus. Our PT to $28 (fr $30)."
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Shares of Sonic closed at $27.44 yesterday.