UPDATE: Wunderlich Securities Reiterates on Buffalo Wild Wings on Impressive EPS Beat

In a report published Tuesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating on Buffalo Wild Wings BWLD, and raised the price target from $165.00 to $180.00. In the report, Wunderlich Securities noted, “Buffalo Wild (BWLD) reported especially strong Q1 EPS growth of 71% to $1.49 vs. our $1.33/Street $1.34. The results reflect better-than-projected revenue, SSS, avg. weekly sales and rest. margins. Revenue grew 20.9% to $367.9mm aided by 11.6% unit growth, co-SSS of 6.6% and avg. wkly. sales +7.0%. Aided by lower wing prices, COGS declined 450bps as rest. margins expanded 450bps to 21.5% (vs. our 20.0%), driving the EPS beat. With Q2TD SSS off to a strong start (co 5.7%, franch 4.4%) and its commodity outlook favorable, 2014 EPS target was raised to 25% (~$4.75) from 20%. "Factoring more aggressive assumptions, we are raising 2014 EPS to $5.10 from $4.80, 2015 to $6.10 from $5.62. Applying a 30x P/E to our 2015 EPS, we have raised our PT to $180 from $165 and reiterate our Buy rating.” Buffalo Wild Wings closed on Monday at $133.39.