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Investing.com - Morgan Stanley lowered its price target on Wingstop (NASDAQ:WING) to $372.00 from $400.00 on Wednesday, while maintaining an Overweight rating on the restaurant chain’s stock. The stock currently trades at $254.99, down about 10% year-to-date, despite showing strong revenue growth of 22.7% in the last twelve months.
The price target reduction follows what the investment firm described as "a rather tough quarter" for the chicken wing restaurant chain, which Morgan Stanley indicates is already widely recognized by market participants. According to InvestingPro data, 12 analysts have revised their earnings downwards for the upcoming period.
Morgan Stanley reduced its financial projections for Wingstop, attributing the changes primarily to macroeconomic factors and challenging year-over-year comparisons rather than fundamental business issues. Get access to 15+ additional exclusive ProTips and comprehensive analysis with InvestingPro, including detailed insights into Wingstop’s valuation and growth prospects.
Despite the price target cut, the firm maintained its Overweight rating, suggesting continued confidence in Wingstop’s long-term prospects.
Morgan Stanley noted that it sees "favorable risk-reward skew into next year" for the company, as the firm believes no significant structural changes are affecting Wingstop’s business model.
In other recent news, Wingstop Inc . reported its Q2 2025 earnings, showcasing a solid performance despite market challenges. The company achieved a 13.9% increase in system-wide sales, reaching $1.3 billion, and a 12% rise in total revenue, amounting to $174.3 million. However, domestically, same-store sales experienced a slight decline of 1.9%. These developments reflect Wingstop’s ability to maintain growth even as market conditions fluctuate. The earnings report provides investors with critical insights into the company’s financial health and operational performance. While the stock showed minor fluctuations in trading, the focus remains on the company’s revenue growth and sales performance. Analysts and investors will likely continue to monitor these metrics closely in the coming quarters.
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