UPDATE: RBC Capital Markets Initiates Coverage on Burger King Worldwide with Sector Perform Rating, $22 PT on Lack of Upside

In a report published Friday, RBC Capital Markets analyst David Palmer initiated coverage on

with a Sector Perform rating and $22.00 price target. In the report, RBC Capital Markets noted, “Burger King's 100% franchised business model offers stability and predictability of earnings and cash flows with low capital requirements and insulation from input costs. In addition, international unit growth has been accelerating--to 10% from 6% in 2011. However, the company's domestic sales momentum and current valuation leave us with little upside to our target.” Burger King Worldwide closed on Thursday at $20.77.