Restaurant brands began bidding to acquire Popeyes Louisiana Kitchen Inc PLKI Monday, according to Reuters sources, and one analyst thinks the deal could be expensive.
Wedbush analyst Nick Setyan told Benzinga he believes Popeyes is fairly valued, and because the stock has recently done well for investors, he would be interested to see what multiple it attracts.
"I think $75 is at the very high end of fair value," Setyan elaborated.
Shares spiked up 14.5 percent on the news and are trading up 13.3 percent on the day.
Nick Donato contributed to the report.
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