UPDATE: Sterne Agee Initiates Coverage on Fiesta Restaurant Group with Buy Rating, $67 PT on Open-Ended Growth Story

In a report published Tuesday, Sterne Agee analyst Lynne Collier initiated coverage on Fiesta Restaurant Group FRGI with a Buy rating and $67.00 price target. In the report, Sterne Agee noted, “We believe that Fiesta Restaurant Group (FRGI) represents one of the most compelling long-term investment opportunities in the restaurant industry. Our investment thesis is supported by the following: 1) FRGI operates two differentiated brands within fast casual, which we forecast to continue to gain share vs. other restaurant segments over the next several years; 2) FRGI generates industry-leading productivity measures at Pollo Tropical with strong guest traffic and top-tier sales/unit and margins; 3) we see a multi-decade growth opportunity given 328 restaurants in just 6 states; 4) we think guidance is conservative and provides an attractive set-up for '15; 5) given a sum-of-the-parts analysis, we are introducing a PT of $67.” Fiesta Restaurant Group closed on Monday at $58.46.