Football Season Brings Inflation To Wing Prices; BMO Stays Positive On Buffalo Wild Wings
Football and wings go hand in hand. Now that the season is in full swing, wing prices have remained inflationary, increasing 9–10 percent above year-ago levels, to $1.65.
According to BMO, "The acceleration in wing price inflation likely reflects strong seasonal demand ahead of the football season and lapping of the abnormal seasonal pattern in the year-ago period."
BMO holds an Outperform rating and a $200 price target on Buffalo Wild Wings (NASDAQ: BWLD), representing a 21 percent increase over current levels.
BMO believes Buffalo Wild Wings is an attractive investment due to several factors, including:
- A compelling long-term growth outlook.
- Likely upward earnings revisions driven by strategic initiatives, favorable wing cost outlook and the potential for a comp recovery.
- A valuation that is misaligned with the company's growth potential (adjusting for accretion of strategic initiatives).
At time of writing, Buffalo Wild Wings was up 0.5 percent on the day, trading at $161.92.
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Latest Ratings for BWLD
|Aug 2016||Canaccord Genuity||Initiates Coverage on||Hold|
|Aug 2016||Longbow Research||Downgrades||Neutral||Underperform|
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