UPDATE: Bank of America Merrill Lynch Raise Sonic PT to $11.50

Bank of America Merrill Lynch maintains a Buy rating on Sonic SONC and raise its price target from $11 to $11.50. Bank of America Merrill Lynch comments, “We rate SONC shares Buy and are raising our price objective from $11 to $11.50 driven by our higher estimates. Our PO reflects targeted EV to EBITDA valuation of 8.3x and a targeted P/E of 16.5x our FY13 EPS. Our targeted valuation parameters represent a discounted valuation of 15-20% on an EV to EBITDA basis and 5% on a P/E basis versus the QSR comparables. In our view, SONC can narrow the valuation gap to peers with consistent execution.” Sonic closed at $9.34 on Wednesday.
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