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Investing.com - Freedom Broker has lowered its price target on The ONE Group Hospitality Inc. (NASDAQ:STKS) to $5.10 from $5.50 while maintaining a Buy rating on Wednesday. The stock, currently trading at $2.69, has seen a 26% decline over the past year, according to InvestingPro data.
The revised valuation follows Freedom Broker’s analysis of the company’s second quarter fiscal 2025 results and recent developments.
Despite the price target reduction, the new $5.10 target still implies a significant 90% upside potential relative to the stock’s closing price on Wednesday, August 20.
Freedom Broker analyst Georgy Vashchenko provided the updated outlook in a research note to investors.
The ONE Group Hospitality operates high-end restaurants and lounges, including the STK steakhouse brand and other concept restaurants.
In other recent news, ONE Group Hospitality announced its earnings for the second quarter of 2025, which fell short of analysts’ expectations. The company reported earnings per share (EPS) of $0.05, missing the anticipated $0.09, resulting in a negative surprise of 44.44%. Revenue figures were also slightly below projections, coming in at $207.4 million compared to the expected $207.95 million. These results highlight the challenges faced by ONE Group Hospitality in meeting market forecasts. The earnings miss is a significant development for investors and analysts, as it may influence future evaluations and expectations. While the company did not meet its financial targets, the earnings release provides essential insights into its current performance. Analysts and investors will be closely monitoring how ONE Group Hospitality addresses these challenges in the upcoming quarters.
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