Wingstop NBA pact to enhance brand visibility, says Stephens

Stephens analyst Jim Salera keeps an Overweight rating on Wingstop (WING) with a $490 price target after the company announced it will become the official chicken partner of the National Basketball Association and NBA G league with the groups have entering into a multiyear partnership. This marks Wingstop’s first official collaboration with a major U.S. sports league, the analyst tells investors in a research note. The firm believes the media exposure is likely to further enhance Wingstop’s brand visibility and aligns with its growth strategy. It thinks Wingstop “has plenty of awareness whitespace” as new customer acquisition and returning customer sales continue to show strength. Today’s announcement demonstrates Wingstop’s strategic focus on leveraging sports partnerships to accelerate brand growth, contends Stephens.