DA Davidson raises Portillo’s stock price target on earnings beat
Investing.com ·
DA Davidson raises Portillo’s stock price target on earnings beat
Investing.com - DA Davidson raised its price target on Portillo’s, Inc (NASDAQ:PTLO) to $7.00 from $5.00 while maintaining a Neutral rating on the stock.
The restaurant chain’s third-quarter same-store sales and adjusted EBITDA exceeded consensus estimates as traffic improved sequentially and restaurant-level margin unexpectedly rose. The company also raised its fiscal 2026 adjusted EBITDA guidance based on the third-quarter performance and same-store sales improvement in the fourth quarter to date. The strong results have propelled the stock to its 52-week high of $7.02, with shares surging 44% in just the past week. With a market cap of $527.74 million and EBITDA of $80.36 million over the last twelve months, the company trades at a P/E ratio of 23.86.
Portillo’s plans to close underperforming units in the fourth quarter, which is expected to provide a margin tailwind in fiscal 2027. DA Davidson set its price target based on 11 times fiscal 2027 EBITDA.
Read the full story at Investing.com · All coverage of this story