Wingstop downgraded to Hold from Buy at Truist - InvestingChannel

Wingstop downgraded to Hold from Buy at Truist

Truist analyst Jake Bartlett downgraded Wingstop to Hold from Buy with a price target of $125, down from $145. While this is not purely a valuation call, the impact on the stock from rising risk-free rates increases the bar for strong same-store-sales and development to create shareholder value, Bartlett tells investors in a research note. The analyst expects Wingstop’s “many” sales drivers, like its chicken sandwich and additional delivery partners, to sustain strong sales but he sees risk in 2023 from a pressured lower income consumer. Bartlett sees near-term risk in Q3 driven by macro uncertainty. Macro uncertainty could slow the company’s development as it did following the Great Recession, he contends.

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