UPDATE: Wedbush Securities Reiterates Outperform Rating, Raises PT on Krispy Kreme Doughnuts
In a report published Monday, Wedbush Securities reiterated its Outperform rating on Krispy Kreme Doughnuts (NYSE: KKD), and raised its price target from $11.00 to $14.00.
Wedbush Securities noted, “We continue to believe acceleration in domestic company and franchise unit development, driven by improved cash-on-cash returns, combined with already industry-leading international growth, could result in sustained double-digit EPS growth ahead of expectations and an expanded valuation. Our checks and management commentary from recent management meetings indicate FQ4 comps running ahead of expectations. Based on our FQ4 checks, we believe SSS are running above consensus of 1.5-2% on the heels of increased brand awareness and successful promotions. We are increasing our FQ4 SSS growth expectation to 2.5% from 1.5%. We also note that management commented they see no reason why strong transaction trends should decelerate in FQ4 during last Thursday's management meetings in NYC.”
Krispy Kreme Doughnuts closed on Friday at $11.36.
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