Fogo De Chao Inc (NASDAQ:FOGO) was upgraded by investment analysts at Canaccord Genuity from a “hold” rating to a “buy” rating in a research report issued on Thursday, May 4th. The brokerage presently has a $20.00 target price on the restaurant operator’s stock, up from their prior target price of $16.00. Canaccord Genuity’s price objective suggests a potential upside of 43.37% from the company’s previous close.
The analysts wrote, “We are forecasting that SSS for U.S. stores remain in positive territory for the remainder of ’17 given the company’s current slate of sales initiatives (Saturday day-part expansion + new menu items) and bar remodel program. While margins were pressured in Q1 by the launch of these initiatives, we expect this cost headwind to abate beginning in Q2. We are reiterating our BUY rating and $20 target price, which reflects upside potential of +20% from current levels and is based on a multiple of ~10x our FY18 EBITDA estimate of $68.2 million. Key takeaways U.S. comps once again exceed expectations: FOGO reported a U.S. comp of +0.9%, above the Street of -1.0% and our recently increased estimate of flat. Driven by momentum from various sales initiatives (day-part expansion, price optionality and value). Traffic in the U.S. increased +0.8%, exceeding the Knapp-Track High-end Steakhouse and Blackbox Intelligence Upscale benchmarks by 370 and 400 bps, respectively.””
Several other brokerages also recently weighed in on FOGO. Jefferies Group LLC reiterated a “buy” rating on shares of Fogo De Chao in a research note on Friday, January 6th. Wells Fargo & Co lifted their target price on Fogo De Chao from $13.25 to $15.50 and gave the company an “in-line” rating in a research note on Wednesday, March 15th. Finally, Deutsche Bank AG lifted their target price on Fogo De Chao from $14.50 to $15.00 and gave the company a “hold” rating in a research note on Wednesday, March 15th. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $16.36.
Shares of Fogo De Chao (NASDAQ:FOGO) remained flat at $13.95 during midday trading on Thursday. The stock had a trading volume of 62,749 shares. The firm has a 50 day moving average of $15.75 and a 200 day moving average of $14.46. The stock has a market capitalization of $393.56 million, a PE ratio of 17.22 and a beta of 0.44. Fogo De Chao has a 12-month low of $10.50 and a 12-month high of $17.05.
Fogo De Chao (NASDAQ:FOGO) last announced its earnings results on Monday, May 8th. The restaurant operator reported $0.18 earnings per share for the quarter, meeting the consensus estimate of $0.18. Fogo De Chao had a return on equity of 9.35% and a net margin of 10.39%. The company had revenue of $76.40 million for the quarter, compared to the consensus estimate of $75.06 million. During the same period last year, the business posted $0.21 EPS. The company’s revenue was up 10.9% on a year-over-year basis. On average, equities analysts forecast that Fogo De Chao will post $0.93 earnings per share for the current year.
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A number of institutional investors have recently modified their holdings of the company. Geode Capital Management LLC boosted its position in shares of Fogo De Chao by 5.9% in the first quarter. Geode Capital Management LLC now owns 50,548 shares of the restaurant operator’s stock valued at $821,000 after buying an additional 2,808 shares in the last quarter. Vanguard Group Inc. boosted its position in Fogo De Chao by 2.5% in the first quarter. Vanguard Group Inc. now owns 219,662 shares of the restaurant operator’s stock worth $3,570,000 after buying an additional 5,399 shares during the period. River & Mercantile Asset Management LLP boosted its position in Fogo De Chao by 7.9% in the first quarter. River & Mercantile Asset Management LLP now owns 202,140 shares of the restaurant operator’s stock worth $3,280,000 after buying an additional 14,800 shares during the period. Oxford Asset Management bought a new position in Fogo De Chao during the first quarter worth $553,000. Finally, Bank of New York Mellon Corp boosted its position in Fogo De Chao by 5.2% in the first quarter. Bank of New York Mellon Corp now owns 51,005 shares of the restaurant operator’s stock worth $829,000 after buying an additional 2,537 shares during the period. 91.20% of the stock is owned by hedge funds and other institutional investors.
About Fogo De Chao
Fogo de Chao, Inc is a United States-based holding company. The Company, through its subsidiaries, operates upscale Brazilian churrascaria steakhouses under the brand of Fogo de Chao. The Company owns 100% of Brasa (Purchaser) Inc (Brasa Purchaser), which owns 100% of Brasa (Holdings) Inc (Brasa Holdings).
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