Better days are coming for Wingstop Inc (NASDAQ: WING) shareholders, says a Wedbush analyst who added the restaurant company to his list of “Best Ideas” on Wednesday.
Nick Setyan assigns a $165 price target to Wingstop
Nick Setyan rates WING at “outperform” with a price target of $165 a share that represents a 45% upside from here. In a note this morning, he said:
We believe upside to 2022 SSS growth expectations exists and view WING as relatively well-positioned in both recessionary and expansionary environments due to its historical outperformance, its relative value positioning, and the uptick in the national ad fund this year.
In its latest reported quarter, Wingstop’s domestic same-store sales were up 7.5%, helping total revenue pop up 13.8% on a year-over-year basis.
Sell-off made Wingstop a great buying opportunity
Wingstop has had a rough start to the year, with the stock down more than 30% YTD, which Setyan says makes it attractive on valuation. He added:
Wingstop is the only restaurant within our coverage universe that will see food cost deflation in 2022, which will allow for a number of options to sustain top line outperformance, while peers’ options may be limited.
Wingstop has a history of doing well in times when commodity prices go up as well as when they come down. The chain of nostalgic, aviation-themed restaurants recently debuted in Spain as part of its broader push into international markets.
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