WEN - Wendy's Fundamentals Do Not Justify Recent Pressure On Shares: Analyst Says Stock Underappreciated | Benzinga
Wedbush analyst Nick Setyan reiterated an Outperform rating on Wendy's Company (NASDAQ: WEN), lowering the price target to $24 from $26.50.
Setyan views WEN's current valuation as an overly pessimistic assessment of management's ability to navigate towards MSD-HSD annual EBITDA growth and low- to mid-teens annual EPS and FCF/share growth in 2023 and beyond.
The analyst believes the current buy-side Q3 domestic SSS growth expectation of ~2%, if not slightly lower, is overly downbeat. The current Q3 domestic SSS growth estimate is 3.6%.
Setyan considers the worst-case Q3 SSS growth scenario to be 2.5%, with a more likely outcome in the 3%-3.5% range as trends improved materially ...