Roark Reportedly Raises Bid For Buffalo Wild Wings, Stephens Says A Deal Is 'Likely'

Over the last week of trading, Buffalo Wild Wings BWLD saw downgrades from UBS and Deutsche Bank as analysts evaluated the implications of Roark Capital Group’s $2.3-billion buyout bid.

By their assessment, the $150-per-share offer implied little upside. But Roark has since raised its bid and inspired Street confidence in the stock’s room to run.

The Rating

Stephens analyst Will Slabaugh raised his Buffalo Wild Wings price target from $115 to $155 while reiterating an “equal-weight (volatile)” rating.

The Thesis

Roark boosted its bid to $155 Sunday night, according to Stephens, suggesting 6.3-percent upside from Buffalo Wild Wings’ Friday close. The earlier, $150-bid implied a 28-percent premium from the stock’s Nov. 10 price.

Neither party has publicly confirmed the takeover offer, but Slabaugh believes the sources feeding Wall Street Journal and Bloomberg reports and asserts that “suspected rationale of the potential acquirer make a deal likely.”

Slabaugh anticipates a buyout by either Roark or one of the other multiple bidders reported by StreetInsider.

Price Action

At time of publication, Buffalo Wild Wings traded at $145.68.

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