Wingstop: Rising Wing Costs May Hamper Medium-Term Growth, Analyst Downgrades Rating
Portfolio Pulse from Nabaparna Bhattacharya
Wedbush analyst Nick Setyan downgraded Wingstop Inc. (NASDAQ:WING) to Neutral from Outperform, lowering the price target to $185 from $240. Setyan believes that rising wing costs could limit WING's medium-term growth and valuation. The analyst also lowered the 2023 and 2024 EPS estimates for WING. WING shares are trading lower by 7.79% to $165.07.
July 28, 2023 | 6:06 pm
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NEGATIVE IMPACT
Wingstop's stock was downgraded due to rising wing costs, which could limit its medium-term growth. The price target was also lowered.
The downgrade by Wedbush analyst is based on the rising wing costs, which could limit WING's medium-term growth and valuation. This negative outlook is likely to put downward pressure on the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100