Wendy’s downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Brian Harbour downgraded Wendy’s (WEN) to Underweight from Equal Weight with a price target of $14, down from $22. The firm sees potential for “slow comp trends,” as it thinks Wendy’s “is squeezed somewhat by the value wars.” While the company’s early Q4 saw “impressive acceleration” from the Krabby Patty limited time offer, that did seem to revert and the history here would suggest that doing this sustainably can be challenging, the analyst tells investors in a research note. Morgan Stanley aloo sees ongoing unit growth challenges for Wendy’s.