Monro initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst David Lantz initiated coverage of Monro with an Equal Weight rating and $35 price target. The firm sees an energized management team, self-help initiatives, working cap opportunities and category resilience, but awaits a cleaner entry with more consistent top-line/profitability performance. Further, Wells sees the erosion of the valuation premium as appropriate and believes near-term re-rating likely proves difficult with potentially sub-mid-single digit comps, FY24 Street expectations that embed 15%-plus EPS growth and choppy consumer behavior.