Morgan Stanley Sees Solid Yet Unremarkable Quarter For El Pollo Loco Holdings Inc

In a report published Friday, Morgan Stanley analyst John Glass reiterated an Underweight rating and $22.00 price target on El Pollo Loco Holdings Inc LOCO. In the report, Morgan Stanley noted, “Inaugural Q results solid though largely within expectations. SSS guidance suggests momentum continues into 3Q, and unit development remains on track. Higher pro forma tax rate offset these positives and our EPS est remains unchanged at 53c for '14. Fundamentals solid, but valuation still stretched.” El Pollo Loco Holdings closed on Thursday at $34.79.