William Blair analyst Sharon Zackfia has maintained their bullish stance on PTLO stock, giving a Buy rating on October 23.
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Sharon Zackfia has given her Buy rating due to a combination of factors that suggest a positive outlook for Portillo’s despite some challenges. The company’s third-quarter performance showed resilience with a smaller-than-expected decline in comparable sales, indicating a stronger position than initially anticipated. Although there was a modest decline in traffic, the average ticket value increased, demonstrating the company’s ability to maintain pricing power.
Furthermore, while there were mixed results in the AWS for the classes of 2023 and 2024, the stabilization and healthy volumes for the class of 2023 provide a positive signal. Despite a decline in restaurant-level margins due to increased costs, the reaffirmation of the 2025 revenue outlook suggests confidence in the company’s long-term growth potential. These factors combined justify the Buy rating as Portillo’s is expected to overcome short-term hurdles and achieve its growth objectives.
In another report released on October 23, TR | OpenAI – 4o also upgraded the stock to a Buy with a $6.50 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PTLO in relation to earlier this year.