UPDATE: Goldman Sachs Initiates Coverage on Burger King Worldwide with Buy Rating, $25 PT on International Growth and Upcoming Recapitalization

In a report published Monday, Goldman Sachs analyst Michael Kelter initiated coverage on

with a Buy rating and $25.00 price target. In the report, Goldman Sachs noted, “We see BKW as being in the ‘Fountain of Youth' phase of its lifecycle, with accelerated international expansion to come, much of which will be in fast-growing emerging markets. We forecast the potential for sustained 18-20% EPS growth driven by (1) 5-7% annual unit growth as BKW's well-capitalized and incented ‘master franchisees' build units around the world, (2) 2-3% SSS growth driven mainly by overseas performance, (3) 2-3% annual margin expansion as increased royalty streams lever its fixed cost infrastructure, and (4) 7-8% from FCF deployment in light of a model that requires almost no capex.” Burger King Worldwide closed on Friday at $20.38.