Longbow Loves Doughnuts: Starts Coverage on Krispy Kreme with Buy, $15 target
Longbow analyst Alton Stump says to buy Krispy Kreme Doughnuts (NYSE: KKD) ahead of anticipated impressive revenue and EPS growth.
The firm this morning initiated coverage on Krispy Kreme with a Buy rating and $15 price target, around 50 percent higher than its closing price on Thursday.
Longbow sees a FY14 adjusted EPS of $0.57, compared to Krispy Kreme's own estimates between $0.49 and $0.55 per share.
Investors in Krispy Kreme shares are responding positively to the new Buy rating Friday afternoon. The stock is currently trading up over 9 percent to around $11.
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