Wedbush Upgrades Buffalo Wild Wings, Inc. (BWLD) to Outperform

Wedbush upgraded Buffalo Wild Wings, Inc. (NASDAQ: BWLD) from Neutral to Outperform with a price target of $200.00 (from $160.00), saying they believe 2016 expectation will prove conservative.

Analyst Nick Setyan commented, "We expect SSS growth outperformance relative to current expectations, along with a COGS tailwind and a lower probability of non-COGS negative surprises, to result in upward EPS revisions as 2016 progresses. Therefore, we upgrade to OUTPERFORM from NEUTRAL."

2016 SSS growth expectations may prove conservative, the analyst believes. "We believe the near-term marketing focus on (1) value days, particularly as the Tue/Thu price increases in November are put further in the rear-view mirror, (2) lunch throughput, (3) increased alcohol mix, and (4) online ordering/takeout could contribute 150-350 bps of SSS growth throughout 2016. We also would expect an incremental price increase in 2H:16 above current guidance, and all within the context of easing compares throughout 2016. Finally, we estimate a 40 bps contribution from 60-70 stadia remodels in 2016. We also note that testing of various technology initiatives is set to continue in 2016, and could culminate in various rollouts by the end of ’16 and into 2017, including table order-and-pay, loyalty, and server handhelds."

For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $162.92 yesterday.

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