Deutsche Bank Hosted A Bull/Bear Client Debate On Buffalo Wild Wings, But Opinions Were Unanimous

Deutsche Bank recently hosted a “Bull-Bear” debate client lunch, with clients presenting both bull and bear cases for Buffalo Wild Wings BWLD. Unfortunately, not a single client chose to present a bullish case for the stock.

“It is common that a Bull-Bear debate/discussion leans decidedly in one way or the other, but what we found in this room was a decidedly bearish tone,” analyst Brett Levy explains.

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Levy said he and his fellow analysts were left to construct a bullish argument for Buffalo Wild Wings to counter the clients’ unanimous bearish viewpoint.

Bears highlighted slowing sales momentum, potential labor challenges, lagging technology implementation and unfavorable valuation.

Levy argued that the company operates in a favorably-competitive market and is focused on improving margins. In addition, the company has easy comps ahead, and the stock’s current valuation creates a potentially competitive risk/reward balance.

Although the analysts were left to present the bull argument, Deutsche Bank officially maintains a Hold rating on Buffalo Wild Wings with a $165 price target.

The firm’s price target is based on around 9x NTM EV/EBITDA and approximately a 29x NTM P/E.

So far this year, Buffalo Wild Wings’ stock is down 7.3 percent and is now trading around 28 percent lower than its all-time high.

Disclosure: the author holds no position in the stocks mentioned.