There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Restaurant Brands International (NYSE:QSR) and Home Depot (NYSE:HD) with bullish sentiments.
Restaurant Brands International (QSR)
Oppenheimer analyst Brian Bittner reiterated a Buy rating on Restaurant Brands International today and set a price target of $75. The company’s shares closed yesterday at $63.99.
Bittner observed:
“Shares have rebounded +20% since May 1st, yet we think QSR still represents a top- pick in the mid-$60s. Most overlooked are catalysts to drive unit growth >7% annually, which would match (or surpass) DPZ as best-in-class. This, and renewed optionality for capital deployment force our attraction to QSR’s still discounted valuation. Nearer term, Tim Horton’s overhang on shares could continue to subside as it now distances itself from a string of weak quarters and unloads fresh sales drivers. For 2Q18 results, our analysis implies a solidly in-line report, but also suggests EPS upside vs. Street could be restricted by distribution profits and new franchise accounting.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 11.5% and a 68.7% success rate. Bittner covers the Services sector, focusing on stocks such as Jack In The Box Inc, Yum China Holdings, and BJ’s Restaurants.
Currently, the analyst consensus on Restaurant Brands International is a Strong Buy with an average price target of $70.67, which is a 10.4% upside from current levels. In a report released yesterday, Cowen & Co. also upgraded the stock to Buy with a $74 price target.
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Home Depot (HD)
In a report released today, Brian Nagel from Oppenheimer assigned a Buy rating to Home Depot. The company’s shares closed yesterday at $201.10, close to its 52-week high of $207.61.
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 9.1% and a 66.6% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.
Home Depot has an analyst consensus of Strong Buy, with a price target consensus of $212.
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