UPDATE: Miller Tabak Upgrades Buffalo Wild Wings to Buy on Multiple Positive Factors

In a report published Friday, Miller Tabak analyst Stephen Anderson upgraded the rating on Buffalo Wild Wings BWLD from Hold to Buy, and raised the price target from $98.00 to $117.00. In the report, Miller Tabak noted, “We upgrade shares of Buffalo Wild Wings (BWLD) to Buy (from Hold) and raise our price target to $117 (from $98) as we think the combination of lower average wing costs, mid-single-digit comp growth, and lower operating costs will lead to mid-20% EPS growth in 2014. Specifically, we think a retreat in corn feed prices and record wing supplies will not only mitigate any seasonal rise in wing costs, but also set the stage for even lower wing costs in 2014. We also expect continued strength in BWLD's new unit development, and think accelerated overseas development and the attendant rise in licensee income will result in sustained positive free cash flow beginning in 2014. Even as BWLD shares have climbed more than 30% so far in 2013, we argue the shift in our commodity price outlook warrants further multiple expansion, and think an industry-high short float could fuel additional price upside.” Buffalo Wild Wings closed on Wednesday at $99.39.