First Watch Poised To Reach Its Goal Of Over 2,200 Domestic Locations Despite Tough Macro Conditions, Says Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Stephens & Co. analyst Jim Salera initiated coverage on First Watch Restaurant Group, Inc. (NASDAQ:FWRG) with an Overweight rating and a $20 price target. Despite tough macro conditions, First Watch is expected to achieve significant growth, aiming for over 2,200 domestic locations. The analyst forecasts annual revenue growth in the low double digits, driven by unit growth and same-store sales. However, challenges such as a tough consumer environment and Hurricane Milton could impact revenue.

October 17, 2024 | 6:22 pm
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Stephens & Co. analyst Jim Salera initiated coverage on First Watch with an Overweight rating and a $20 price target. The company is expected to achieve significant growth, aiming for over 2,200 domestic locations. Revenue growth is forecasted in the low double digits, but challenges such as a tough consumer environment and Hurricane Milton could impact revenue.
The analyst's Overweight rating and positive growth outlook for First Watch suggest a likely positive impact on the stock price. The company's expansion plans and revenue growth forecasts are strong indicators of potential upside. However, the mention of macroeconomic challenges and Hurricane Milton introduces some risk, which tempers the overall positive outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100