Citi analyst Jon Tower has maintained their bullish stance on FWRG stock, giving a Buy rating on March 4.
Jon Tower has given his Buy rating due to a combination of factors highlighting the company’s robust strategic execution and growth prospects. First Watch Restaurant Group’s continued expansion, including the introduction of innovative in-store tools like pay-at-table technology, has positioned the brand for further market share gains and above-industry growth rates. Despite a slow start to the year due to weather conditions and the challenge of surpassing a previous year with an extra week, the company’s guidance and key performance indicators (KPIs) suggest a strong competitive stance against its peers, with the potential for continued EBITDA growth and subsequent multiple expansion.
The report also emphasizes First Watch’s geographical growth into new markets such as New England and Las Vegas, marking its first expansion since 2019, and the acquisition of franchise territories that open up development in 17 additional market areas. This strategic move offers clear visibility into balanced store growth and further EBITDA expansion. Additionally, the company’s adaptation to softer sales at the beginning of the year with new productivity tools and modest pricing strategies positions it to meet its full-year financial targets. Based on these factors, along with a consistent performance post-IPO and the expectation of sustained market share gains, Jon Tower has removed the High Risk rating and maintains a Buy recommendation with an increased price target.
In another report released on March 4, Barclays also assigned a Buy rating to the stock with a $23.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
First Watch Restaurant Group (FWRG) Company Description:
First Watch Restaurant Group Inc is a daytime restaurant concept serving made-to-order breakfast, brunch, and lunch using fresh ingredients. It generates revenues from Restaurant sales and Franchise revenues.
Read More on FWRG:
- First Watch Enhances Shareholder Access to Supplemental Data
- First Watch Restaurant Group, Inc. Reports Strong 2023 Financial Results and Provides 2024 Outlook
- FWRG Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- First Watch Restaurant Group, Inc. to Report Fourth Quarter and Fiscal Year 2023 Financial Results on March 5, 2024
- First Watch Restaurant announces acquisition of Tulsa-Area location, no terms
