BurgerFi initiated with a Buy at EF Hutton

EF Hutton analyst Michael Albanese initiated coverage of BurgerFi with a Buy rating and $2.50 price target. While the combination of macro headwinds, a levered balance sheet and consistent stock sales by a major shareholder has put downward pressure on the stock, the company’s fundamentals are showing early signs of a recovery from both a topline and profitability standpoint, the analyst tells investors in a research note. The firm believes there is too much pessimism priced into BurgerFi’s stock, which provides an attractive entry point for investors. It says recent cost savings and a sales recovery, particularly with Anthony’s, has stabilized BurgerFi’s declining margins and cash burn.