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Investing.com - Jefferies has reduced its price target on Portillo’s, Inc (NASDAQ:PTLO) to $10.00 from $12.00 while maintaining a Buy rating on the restaurant chain’s stock. The stock currently trades at $6.13, near its 52-week low of $6.00, with InvestingPro data showing the stock is trading in oversold territory.
The price target adjustment reflects updated guidance from Portillo’s that includes softer third-quarter same-store sales, following recent weakness observed in August.
Jefferies notes that additional conservatism is now embedded in Portillo’s forecasts through year-end, with the company’s fiscal year guidance now at -1% to -1.5% as the promotional environment continues to weigh on performance.
The research firm also points out that Portillo’s unit growth has been tempered through 2026, with 2025 restaurant-level margin guidance lowered, though this is partially offset by reduced general and administrative expenses.
Despite characterizing the situation as "another reset in the near term," Jefferies indicates that investor expectations remain low, suggesting that "incremental visibility/clarity could support the multiple off trough levels."
In other recent news, Portillo’s Inc. has revised its fiscal 2025 outlook, forecasting a decline in same-store sales between 1% and 1.5%, a notable shift from its earlier prediction of 1% to 3% growth. This adjustment is attributed to challenging industry conditions and falls short of analyst expectations of 1.2% growth. Despite these developments, BofA Securities maintains a Buy rating on Portillo’s, with a price target of $14.00, even as the company plans to keep fiscal 2026 unit openings flat at eight locations, below prior expectations. William Blair continues to hold an Outperform rating, optimistic about the company’s geographic expansion potential in regions like Arizona and Florida. Meanwhile, Stephens has retained an Equal Weight rating, noting Portillo’s strategic reset focused on core market execution and disciplined capital allocation. Additionally, Portillo’s has announced the appointment of Denise Lauer as Chief Marketing Officer, bringing over 20 years of marketing experience, including her previous role at Marco’s Pizza. These developments highlight the company’s ongoing adjustments and strategic initiatives amid industry challenges.
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