Cowen Initiates Coverage on Wendy’s with an ‘Outperform’ Rating



Cowen’s “buy” recommendation

On April 10, Cowen initiated coverage on Wendy’s (WEN) with an “outperform” recommendation and a price target of $21.0. This 12-month price target indicates a potential upside of 16.7% from its price of $17.99 on April 9.

Cowen expects Wendy’s strategy of moving toward less-aggressive, value-oriented offerings to help it meet analysts’ estimates in the first half of 2019, according to CNBC. The diversified financial services company also expects Wendy’s performance to further improve in the second half of the year, improving investors’ confidence and reducing the gap between its valuation multiple and those of its peers.

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Other analysts’ recommendations

Of the 22 analysts that follow Wendy’s, 54.5% have given it “buy” recommendations, while the remaining 45.5% have given it “holds.” None of the 22 analysts covering the stock have given it “sell” recommendations. Analysts have given Wendy’s a 12-month price target of $19.06, which implies a potential upside of 5.9%.

After Wendy’s posted its fourth-quarter earnings results on February 21, JPMorgan Chase and Stifel lowered their price targets on its stock, while UBS increased its price target. JPMorgan Chase lowered its price target from $18.5 to $18.0, and Stifel cut its price target from $17 to $16. UBS increased its price target from $18 to $19.

Peer comparison

Of the 29 analysts that cover McDonald’s (MCD), 79.3% have given it “buy” recommendations, while 20.7% have given it “holds.” Analysts have given MCD a price target of $199.24, which represents a potential upside of 4.8% from its current price of $190.08.

Of the 14 analysts that cover Jack in the Box (JACK), 42.9% have given it “buys,” while 57.1% have given it “holds.” Analysts’ 12-month price target for JACK stands at $91.83, which implies a potential upside of 13.9% from its current price of $80.60.

Of the 12 analysts that follow Restaurant Brands International (QSR), 66.7% have given it “buy” recommendations, while 23.7% have given it “holds.” Analysts have a 12-month price target of $71.44 on the stock, which represents a potential upside of 9.5% from its current price of $65.25.


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