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Northcoast Research Upgrades Wingstop(WING.US) to Buy Rating, Announces Target Price $350

Futu News ·  Nov 2 20:34  · Ratings

Northcoast Research analyst Jim Sanderson upgrades $Wingstop (WING.US)$ to a buy rating, and sets the target price at $350.

According to TipRanks data, the analyst has a success rate of 68.4% and a total average return of 13.1% over the past year.

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Furthermore, according to the comprehensive report, the opinions of $Wingstop (WING.US)$'s main analysts recently are as follows:

  • Wingstop's Q3 results did not meet the heightened anticipations but still displayed remarkable strength with a 21% traffic-driven comparable sales increase, and the guidance for 2024 units was elevated, showing strong franchisee interest. The post-earnings decline is seen as a buying opportunity, highlighting Wingstop's sustained 40%-plus three-year stack comparable sales growth.

  • Wingstop's Q3 earnings per share shortfall was influenced by somewhat weaker comparable sales, reduced restaurant margins, and increased general/administrative expenses and taxes. Despite this, the underlying business momentum remains robust, and the long-term prospects have not been altered. However, the recent deceleration in comparable sales may constrain the stock's performance until there is a clearer sign of stabilization, considering the association between comparable sales and valuation.

  • The firm believes that the recent post-quarterly results downturn in Wingstop's performance is exaggerated. Analysts maintain that Wingstop stands out within the industry with the potential to outperform in transaction growth in the short, medium, and long term, regardless of the economic conditions. Additionally, it is anticipated that Wingstop's continuous outperformance in same-store sales growth will fuel superior unit economics, leading to a boost in unit growth and long-term EBITDA increases that surpass the management's existing long-term goals.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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