UPDATE: Wunderlich Initiates Coverage on Sonic Corporation on New Technology Platforms

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington initiated coverage on

with a Buy rating and $19.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Sonic Corp. (SONC), the nation's largest chain of drive-in restaurants and one of the largest hamburger chains in the U.S., with a Buy rating and 12-18 month target of $19. Following a period of disappointing same-store sales (SSS) and operating results, in recent years management has substantially improved its new product news and marketing, strengthened its operating team, improved its balance sheet and defensive franchise business model, and appears poised for sustained improving results. Recently trading at 8.9x our calendar 2015 EV/EBITDA and 16.5x EPS versus segment peers trading on average at 10.1x and 17.9x respectively, we believe that as the company fortifies its operating results, its valuation will improve, attaining our price target.” Sonic Corporation closed on Thursday at $16.24.