Maxim Group analyst Stephen Anderson maintained a Buy rating on Del Taco Restaurants (TACO) today and set a price target of $15. The company’s shares closed yesterday at $10.59.
Anderson said:
“We maintain our Buy rating on Del Taco (TACO), though lower our price target to $15, from $16, following release of disappointing guidance after the release of final 4Q18 (December) results yesterday. TACO’s 4Q18 pro forma EPS were $0.18, below the $0.19 consensus. We reduce our 1Q19 (March) EPS estimate to $0.05, from $0.08 (vs. $0.07 consensus), and our 2019 (December) EPS estimate to $0.54, from $0.62 (vs. $0.58 consensus), as we now expect a negative comp in 1Q19, as well as higher SG&A spending and occupancy costs for the remainder of 2019. Although we lower our 2020 EPS estimate to $0.67, from $0.73 (vs. $0.65 consensus), our forecast represents a 24% jump in EPS driven by anticipated asset sales to franchisees, sustained comp growth, and cost savings.”
According to TipRanks.com, Anderson is a 5-star analyst with an average return of 10.1% and a 65.5% success rate. Anderson covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Good Times Restaurants Inc, and Dine Brands Global Inc.
Del Taco Restaurants has an analyst consensus of Strong Buy, with a price target consensus of $14.50, a 36.9% upside from current levels. In a report released today, Wedbush also maintained a Buy rating on the stock with a $14 price target.
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Del Taco Restaurants’ market cap is currently $403.1M and has a P/E ratio of 8.61. The company has a Price to Book ratio of 0.95.
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Del Taco Restaurants, Inc. engages in developing, franchising, owning, and operating Del Taco quick-service Mexican-American restaurants. It offers Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries, and milkshakes.
