UPDATE: Morgan Stanley Reiterates On Sonic Corporation As FY15 Guidance Is Muted

In a report published Wednesday, Morgan Stanley analyst John Glass reiterated an Equal-Weight rating on

, and named a $22.00 price target. In the report, Morgan Stanley noted, “Sales have stabilized in recent quarters, though still not robust given roughly flat traffic on increase advertising and product innovation. New menu board (POPS) and digital platform should support LSD comps New POS system and supply chain revamp in FY14 should yield 100-200 bps opportunity for store margins over time or 5-10c to LT EPS model. Reversion back to ascending royalty model in FY15 and beyond adds ~8-9c to EPS. Share buybacks add 7-9% to EPS.” Sonic Corporation closed on Tuesday at $21.55.