Dine Brands price target lowered to $80 from $85 at Wedbush

Wedbush analyst Nick Setyan lowered the firm’s price target on Dine Brands to $80 from $85 and keeps an Outperform rating on the shares. His price target is based on a 8.9-times EV/EBITDA multiple on his 2023 EBITDA estimate, a 15% discount to its 5-year pre-COVID median forward EV/EBITDA multiple of 10.5-times. Setyan believes such a discount is appropriate given somewhat limited near- and medium-term top-line visibility and uncertainty with respect to its securitized debt, somewhat offset by a high level of margin visibility, significantly improved balance sheet position relative to pre-COVID and a significantly improved Applebee’s business relative to pre-COVID. While he makes no changes to his estimates, the analyst removes Dine Brands from the Wedbush Best Ideas List.