Kura Sushi price target lowered to $90 from $120 at Roth MKM

Roth MKM lowered the firm’s price target on Kura Sushi to $90 from $120 and keeps a Buy rating on the shares. The company’s “disappointing” preliminary Q3 results were mostly attributed to softness in California following implementation of the “Fast Act” on April 1st, as it has been reported that California restaurant traffic broadly weakened with the implementation of the “Fast Act” on April 1st, the analyst tells investors in a research note. While the firm is cutting its FY25 EPS view to 19c from 72c however, it does not see Kura Sushi’s growth outlook as “broken”, though it also does not expect the recent “issues” to be quickly resolved.