UPDATE: Jefferies Initiates Fiesta Restaurant Group with Buy on Momentum, Growth, Expansion

In a report published Wednesday, Jefferies analyst Alexander Slagle initiated coverage on Fiesta Restaurant Group

with a Buy rating and $31.00 price target. In the report, Slagle noted, “We like SSS momentum, accelerating unit growth & margin expansion, which we think drives EPS upside & 25%+ growth in 13/14. Our analysis suggests there is a very large development opportunity & significant EPS upside potential that does not appear to be reflected in the stock. We rate FRGI Buy. Jefferies acted as Joint Bookrunner on the recent follow-on offering at $24.25.” Fiesta Restaurant Group closed on Tuesday at $27.26.