UPDATE: Sterne Agee Upgrades Sonic

Sterne Agee upgrades Sonic SONC from a Neutral to a Buy rating and announces a price target of $11.00. Sterne Agee comments, “The primary catalyst for our upgrade to BUY is that we believe that the recent improvement in SSS is likely sustainable over the next several qtrs given core product quality improvements, menu innovation and new advertising. In addition, we view the roll-out of a new POS system and the development of a new lower-cost prototype as longer-term positives. We also note an attractive FCF yield of 13%.” SONC closed at 8.89 yesterday.