Raymond James raises Fulgent Genetics stock price target to $36 on strong performance
Investing.com - Bernstein analyst lowered the price target on Wingstop (NASDAQ:WING) to $350.00 from $400.00 on Wednesday, while maintaining an Outperform rating following the company’s third-quarter earnings report. The stock currently trades at $237.32, down approximately 16% year-to-date according to InvestingPro data.
The fast-casual restaurant chain reported record adjusted EBITDA growth of 18.6% and strong unit growth of 19.3%, which exceeded the consensus estimate of 18%. Despite these positive metrics, Wingstop experienced a 5.6% decline in same-store sales amid what Bernstein described as "broadening consumer softness." The company maintains a P/E ratio of nearly 35, reflecting a high earnings multiple despite recent challenges. InvestingPro data shows 17 analysts have revised their earnings downwards for the upcoming period.
Bernstein cited several initiatives that could help Wingstop return to positive same-store sales growth in fiscal year 2026, including the rollout of Smart Kitchen technology, enhanced marketing through the "Wingstop is here" campaign, a new loyalty program, and continued international expansion.
The firm expressed concern that macroeconomic uncertainties may continue to pressure high-valuation stocks like Wingstop in the near term, potentially keeping the stock range-bound despite its valuation becoming more attractive for long-term investors.
Bernstein maintained its Outperform rating on Wingstop stock, indicating continued confidence in the company’s long-term growth potential despite the near-term challenges and reduced price target.
In other recent news, Wingstop Inc . reported its financial results for the third quarter of 2025, revealing earnings per share of $1.09, which exceeded analyst expectations of $0.92. Despite this earnings beat, the company’s revenue fell short, recording $175.5 million against a forecast of $187.37 million. Raymond James responded to these results by lowering its price target for Wingstop to $325 from $350, while maintaining a Strong Buy rating, citing macroeconomic pressures on certain consumer segments. Similarly, BMO Capital adjusted its price target to $280 from $345, maintaining a Market Perform rating due to a softer comparable sales outlook. The earnings beat was attributed to favorable general and administrative expenses and significant unit growth. Analysts highlighted these factors as helping to offset the weaker sales performance. These developments reflect the company’s strategic initiatives and the ongoing economic challenges impacting its consumer base.
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