This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEB3S0OL_M.jpg
Investing.com — Wingstop Inc (NASDAQ:WING) fell Friday after Piper Sandler double downgraded the stock to underweight from overweight.
Analyst Nicole Miller Regan also slashed the price target on Wingstop by nearly 50%, going from $195 per share to $102. Regan said the price target cut reflects lower earnings estimates which mirror “a lower royalty rate, revised advertising expense ratio, higher interest expense, and higher tax rate.”
“We have taken time to review checks, refine our model, apply a macro overlay, and finally weigh the restaurant industry cycle against our rating,” the analyst said.
Adding: “We fully understand and respect the recent executive shift with no material concern, or impact on this assessment. We do, however, expect WING shares to experience resistance in terms of garnering the same premium multiple in the face of a restaurant industry expansion cycle.”
Wingstop shares fell 4% in early Friday trading. However, they have recouped most of those losses and now trade just 0.3% below yesterday’s closing price.
On Thursday, the company announced its expansion into Spain with four ghost kitchens in Madrid.
