William Blair analyst Sharon Zackfia has reiterated their bullish stance on PTLO stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on a combination of factors that highlight Portillo’s potential for growth and stability. Despite a slight decline in traffic, the company’s fourth-quarter results aligned with expectations, showing resilience in sales performance. The company has maintained its full-year guidance, suggesting confidence in its ability to achieve projected growth, even with some weather-related challenges affecting early-year performance.
Portillo’s is implementing several strategic initiatives to enhance its operations and customer engagement. These include the expansion of kiosk usage, the introduction of a new loyalty program, and improvements in drive-thru service with AI technology. Additionally, increased advertising efforts in newer markets are expected to raise brand awareness and contribute to long-term growth. These initiatives are likely to drive better traffic trends and support the company’s positive outlook, justifying the Buy rating.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $18.00 price target.