Morgan Stanley upgraded Texas Roadhouse (TXRH) to Overweight from Equal Weight with a price target of $213, up from $205. There is still some margin upside for Texas Roadhouse as Morgan Stanley is above Street on margins and earnings accordingly, the analyst tells investors in a research note. Delivering on this can sustain a multiple that is still above the company’s history, contends the firm. It adds Texas Roadhouse’s “clean” balance sheet, and a Bubba’s expansion “story increasingly coming into view should also be supportive” of the shares.
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