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UPDATE: Morgan Stanley Upgrades Burger King Worldwide Inc

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John Glass of Morgan Stanley upgraded shares of Burger King Worldwide Inc (NYSE: BKW) to Overweight from Equal-weight with a $38 price target.

Glass sees the combination of Burger King and its recently acquired Tim Hortons firmly establishing Burger King as the fifth-largest market cap restaurant in the world. Glass expects $175 million in near-term synergies generated from the merger.

See Also: Morgan Stanley On Yum! Brands, Inc.'s Upcoming Quarterly Results: All Eyes On China

Glass believes that Burger King's majority shareholder, 3G Capital, is a major positive to creating shareholder value.

"3G's track record of creating platform companies and generating shareholder value has been strong and we think this new entity will likely continue to grow through acquisitions over time," Glass wrote Monday.

In addition to synergies, Glass sees a "significant" unit growth opportunity ahead as Burger King continues to expand its footprint internationally. With Tim Hortons added to the mix, the analyst expects a combined international growth by 200 basis points which "should be among the fastest international growers in restaurants."

Latest Ratings for BKW

Dec 2014RBC CapitalUpgradesSector PerformOutperform
Dec 2014Goldman SachsInitiates Coverage onBuy
Nov 2014BarclaysMaintainsEqual-Weight

View More Analyst Ratings for BKW
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Posted-In: Burger King John Glass Tim HortonsAnalyst Color News Upgrades Price Target Analyst Ratings


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