Bank of America Securities analyst Sara Senatore has reiterated their bullish stance on FWRG stock, giving a Buy rating yesterday.
Sara Senatore has given her Buy rating due to a combination of factors that highlight First Watch Restaurant Group’s potential for growth. Despite a decline in traffic during the fourth quarter, there was a sequential improvement, and January showed positive same-store traffic, indicating a promising trend. This improvement is driven by strategic marketing efforts, enhanced food quality, and adjustments in third-party collaborations, which are expected to help achieve positive guest counts in fiscal year 2025.
Sara Senatore also notes that First Watch’s EBITDA guidance remains stable despite inflationary pressures and increased advertising investments. The company’s conservative initial guidance suggests potential upside, and the modest price increases planned for the year could enhance its competitive value proposition. Furthermore, the long-term growth prospects, including higher average unit volumes and a stable adjusted EBITDA, support the Buy rating and the raised price objective of $28.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $21.00 price target.
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