Maxim Group analyst Stephen Anderson maintained a Buy rating on Del Taco Restaurants (TACO) today and set a price target of $16. The company’s shares closed yesterday at $10.01, close to its 52-week low of $9.46.
Anderson noted:
“We maintain our Buy rating and $16 price target on Del Taco (TACO) ahead of the release of final 4Q18 (December) results on Monday, March 18. We expect TACO to post in-line 4Q18 EPS of $0.19, following the release of its +1.9% blended comp for the quarter at the ICR conference in January. We lower our 1Q19 (March) EPS estimate to $0.08, from $0.09 (vs. $0.08 consensus), and our 2019 (December) EPS estimate to $0.62, from $0.63 (vs. $0.59 consensus), to account for reduced 1Q19 traffic, which we attribute to a promotional shift. However, we leave our 2020 EPS estimate unchanged at $0.73 (vs. $0.68 consensus) as we expect top-line boosts from menu initiatives, while asset sales should provide important EPS upside.”
According to TipRanks.com, Anderson is a 5-star analyst with an average return of 10.4% and a 65.3% 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 $15.50.
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Based on Del Taco Restaurants’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $5.87 million. In comparison, last year the company had a net profit of $35.2 million.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock.
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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.
