UPDATE: Wunderlich Securities Reiterates on Buffalo Wild Wings on Position for Strong Start to 2014

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating on Buffalo Wild Wings BWLD, and raised the price target from $162.00 to $165.00. In the report, Wunderlich Securities noted, “Following Buffalo Wild Wings's (BWLD) strong Q313 and supported by the recent drop in spot market wing prices, we are raising our EPS projections. Spot-market prices for jumbo cut wings (proxy for B-dubs wing prices) have continued a dramatic decline, recently falling to $1.18/pound, down from $1.43 on Oct. 29, and down 36% from $1.88 last year. Supported by strong grain crop harvests and the company's new wing-pricing formula, we believe COGS will continue to improve (mitigated by higher beer prices) through 2013 and 2014. Supported by its well-differentiated ‘Wings. Beer. Sports.' positioning, double-digit unit growth, and improving COGS outlook, we believe BWLD is well-positioned to outperform most peers. Factoring 30x P/E to our raised 2015 EPS, we are lifting our PT to $165 from $162.” Buffalo Wild Wings closed on Thursday at $145.35.