Buffalo Wild Wings Down 4% after Morgan Stanley's Downgrade
Thursday morning rating reports included Morgan Stanley's John Glass downgrading Buffalo Wild Wings (NASDAQ: BWLD) from Overweight down to Underweight, lowering the price target from $144 to $143.
Morgan Staley notes, "We think BWLD's multiple expansion reflects more near term excitement about falling costs (specifically wings) and commensurately improving margins, important, but perhaps more temporary changes to the model that ignores the more enduring changes unfolding as unit growth begins to decelerate. Our work shows that unit growth is by far the more long lasting determinant of valuation."
BWLD closed Wednesday at $151.49 and currently trading down 4.3% to $145.
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