UPDATE: Goldman Sachs Initiates Buffalo Wild Wings at Neutral; Growth Waning
Goldman Sachs initiated coverage on Buffalo Wild Wings (NASDAQ: BWLD) with a Neutral rating and a $82.00 price target.
Goldman Sachs noted, "We see risk in the medium term as (1) we believe BWLD is towards the latter stages of its “Hyper-growth” phase, (2) wing cost inflation is pressuring its price value perception, yet it continues to take more pricing, and (3) consensus estimates for 110bp of food cost relief by the end of 2013 seem aggressive as a base case in light of uncertainty around wing costs (partially driven by a potential MCD wing launch.) This said, we see the potential for near-term EPS upside from higher margins, which keeps us from getting more negative at this time."
Buffalo Wild Wings closed at $74.78 on Tuesday.
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