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Wedbush Securities upgraded Denny’s Corporation (NASDAQ:DENN) to an Outperform rating from Neutral after holding what it described as very positive meetings with management.
Analyst Nick Setyan and team walked away from the meeting thinking Denny’s (DENN) is poised to successfully hurdle second half and 2023 expectations. In addition, the restaurant operator’s historical drivers of consistent +10% annual EPS and free cash flow/share growth are not expected to change under new CEO Kelli Valade and the Keke’s acquisition is seen as being on track for a successful integration.
On the earnings front, upside is seen for near-term same-store sales growth expectations and the margin trajectory is looking more promising.
Wedbush assigned a price target of $12.50 for Denny’s based on an 11.5X EV/EBITDA multiple on the increased 2023 EBITDA estimate,
Shares of Denny’s (DENN) moved up 4.26% premarket to $9.78 on Tuesday vs. the 52-week trading range of $8.46 to $17.40.
Image and article originally from seekingalpha.com. Read the original article here.