In a report published Friday, Wedbush analyst Nick Setyan initiated coverage on Kona Grill KONA with an Outperform rating and $24.00 price target.
In the report, Wedbush noted, “We believe Kona Grill is well-positioned to garner a widening premium to growth peers based on growing investor awareness of its best-in-class growth metrics and continued outperformance relative to expectations. Strong new unit opening volumes and SSS growth outperformance to drive increasing cash-on-cash returns. We believe new unit sales volumes are poised to exceed the system average of $4.3 million as they mature, given opening sales levels that are already largely in line with system averages. Combined with SSS growth outperformance contributing to continued leverage in the four-wall economics of the comp base, we expect further improvement in Kona's already category-leading cash-on-cash returns.”
Kona Grill closed on Thursday at $18.59.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in