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Bull Vs. Bear Debate: Buffalo Wild Wings

Bull Vs. Bear Debate: Buffalo Wild Wings
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Goldman Sachs and Credit Suisse have different views on the Minneapolis, Minnesota-based restaurant operator Buffalo Wild Wings (NASDAQ: BWLD).

Bull Thesis

Goldman added Buffalo Wild Wings to the America's Conviction List, saying, “[W]e continue to see data points supportive of a long-term secular story at what we view as a compelling valuation.”

The brokerage, which has a Buy rating and $187 price target on Buffalo Wild Wings shares, said the near-term risk-reward is “favorable,” citing risks related to top-line prices and chicken wing prices are overstated and/or priced in.

"NPD still shows capacity coming out of bar & grill, BWLD's 10K expanded on smaller market opportunity that can drive upside to 1,700 unit target, interest in Copa Americana supportive of soccer driving growing sports viewership, and cord cutting further accelerated in 2015," Goldman wrote in a note to clients.

Related Link: Goldman Adds Buffalo Wild Wings To 'Conviction Buy' List Following Sell Off

Bear Thesis

Credit Suisse is more cautious on Buffalo Wild Wings due to its aggressive pricing. Credit Suisse, which views Buffalo Wild Wings as a "contrarian underperform idea" sees the stock as a contrarian play on upside, i.e., the Street is getting more optimistic on the name but the firm is holding fast to its downside prediction.

"While the Street is modeling recovery in the pace of traffic growth, we are more cautious because BWLD's aggressive pricing over the past few years may finally be driving the value-conscious segment of its customer base to more affordable alternative," Credit Suisse said in a client note.

Shares of Buffalo Wild Wings closed Wednesday's regular trading session at $142.49. In the pre-market hours, the stock was seen up roughly 2 percent.

Image Credit: Public Domain

Latest Ratings for BWLD

Nov 2017Maxim GroupDowngradesBuyHold
Nov 2017UBSDowngradesBuyNeutral
Nov 2017Deutsche BankDowngradesBuyHold

View More Analyst Ratings for BWLD
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Restaurants Top Stories Analyst Ratings Trading Ideas General Best of Benzinga


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