Wendy's Fundamentals Do Not Justify Recent Pressure On Shares: Analyst Says Stock Underappreciated
Portfolio Pulse from Nabaparna Bhattacharya
Wedbush analyst Nick Setyan has reiterated an Outperform rating on Wendy's Company (NASDAQ:WEN), but lowered the price target to $24 from $26.50. Setyan views the current valuation as overly pessimistic and expects the company to achieve mid-single-digit to high-single-digit annual EBITDA growth and low- to mid-teens annual EPS and FCF/share growth in 2023 and beyond. He also expects Q4 domestic SSS growth to not be below Q3's, and has lowered EBITDA estimates but continues to view the high end of $530-540 million '23 guidance as realistic.
October 18, 2023 | 5:02 pm
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Wedbush analyst Nick Setyan has reiterated an Outperform rating on Wendy's Company but lowered the price target to $24 from $26.50. He expects the company to achieve mid-single-digit to high-single-digit annual EBITDA growth and low- to mid-teens annual EPS and FCF/share growth in 2023 and beyond.
The analyst's optimistic outlook on Wendy's future performance, despite lowering the price target, suggests that the company's stock is undervalued. This could lead to an increase in the stock's price in the short term.
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