Dunkin' Brands stock rallies after Wedbush upgrades, boosts price target above record high
Shares of Dunkin' Brands Group Inc. rallied 1.3% in premarket trading Monday, after Wedbush analyst Nick Seytan after being neutral for at least nearly 3 years, citing the belief the donuts and coffee seller is undergoing an inflection in same-store sales growth. Seytan raises his rating to outperform and boosted his stock price target to $92, which is 14% above the June 12 record close of $80.73, from $76. Seytan said his research indicates Dunkin's second-quarter same-store sales is running above consensus expectations of 1.3%, helped by strength in its Dunkin' Go2s offering, new espresso beverages, non-breakfast daypart strength, improved operations and execution and successful marketing. "Importantly, in our view, the probability of a sustained inflection beyond the near-term is now high enough to warrant a more positive stance," Seytan wrote in a note to clients. The stock has run up 24.1% year to date through Friday, while the Dow Jones Industrial Average has gained 14.5%.
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