Jefferies analyst Andy Barish reiterated a Buy rating on First Watch Restaurant Group (FWRG – Research Report) yesterday and set a price target of $24.00.
Andy Barish has given his Buy rating due to a combination of factors that highlight the potential for growth and stability in First Watch Restaurant Group’s performance. The company’s guidance for fiscal year 2025 suggests a return to positive same-store sales growth and stable traffic, bolstered by an increase in marketing expenditure and strategic improvements in technology. This optimistic outlook is further supported by the company’s plans to innovate its menu and enhance customer satisfaction through technological advancements, which are expected to drive positive results in the coming years.
Additionally, despite the challenges posed by commodity inflation, particularly in eggs, and slightly higher general and administrative expenses, First Watch Restaurant Group’s adjusted EBITDA guidance remains strong. The company plans to open a significant number of new units, which are expected to outperform the system average, reinforcing the long-term growth potential that Barish believes is undervalued by investors. These factors, combined with the company’s unique brand and operational model, contribute to Barish’s positive outlook and Buy rating, with a price target adjustment to $24.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $26.00 price target.
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