UPDATE: Jefferies Initiates Sonic with Hold on Fair Estimates/Valuation

In a report published Wednesday, Jefferies analyst Alexander Slagle initiated coverage on Sonic Corporation

with a Hold rating and $14.00 price target. In the report, Slagle noted, “We think estimates & valuation fairly reflect improving visibility for NT EPS growth as share repurchase/debt pay-down accelerates, margins improve and avg. royalty rate moves higher. We rate SONC Hold on concerns that SSS upside will be difficult to come by in 13/14, and that this is the biggest driver to multiple expansion from current levels.” Sonic Corporation closed on Tuesday at $12.53.