Stephens analyst Jim Salera notes First Watch Restaurant (FWRG) Group announced a secondary offering of about 8M shares of its common stock priced at $19.95 per share that were sold by Advent International, its major shareholder. Following the 2021 IPO, Advent remains the controlling shareholder with about 38% of outstanding shares and the firm believes Advent will likely continue to offload shares in coming years. However, its analysis suggests the stock’s multiple has seen strength proceeding previous Advent share sales, which “we believe is generally healthy for the long-term outlook for the stock,” adds the firm, which has an Overweight rating and $25 price target on the shares.
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