UPDATE: Piper Jaffray Initiates Fiesta Restaurant Group at Overweight on Favorable Outlook
In a report published Wednesday, Piper Jaffray analyst Nicole Miller Regan initiated coverage on Fiesta Restaurant Group (NASDAQ: FRGI) with an Overweight rating and $30.00 price target.
In the report, Miller Regan noted, “Our favorable outlook is based on the industry precedent in regards to spinning out and unlocking value in terms of volume growth, unit growth and enhanced profitability, which we believe Fiesta is positioned to do. The industry backdrop is favorable in terms of ‘The Second Course: of The Year of the Restaurant' and potential catalysts include continued positive same-store sales, accelerated development and margin improvement. Our price target equates to ~11x our FY14 EV/EBITDA estimate.”
Fiesta Restaurant Group closed on Tuesday at $27.26.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.