Wunderlich Securities Sees Good Things Ahead For Sonic Corporation

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $26.00 price target on

. In the report, Wunderlich Securities noted, “Our recent conversations with a number of Sonic Corp. (SONC) operators have yielded an unusually high level of optimism for Sonic's business as it enters FY2015. Where typically sales-are-never-good-enough and costs-are-always-too-high, there appears to be greater operator optimism for both better sales and lower costs in the year ahead, fueled by: 1) Sonic's strong new food and promotional pipeline; and 2) better sales and lower cost expectations aided by Sonic's new POPS/ICE technology initiative, beginning to roll to franchise drive-ins. That optimism combined with management's upbeat FY2015 guidance, including EPS growth at the higher end of its 14% to 20% growth target, reinforce our confidence in our accelerating SSS projections. We reiterate our Buy rating and target of $26.” Sonic Corporation closed on Thursday at $21.41.