Olo initiated with bullish view at Lake Street, here’s why

Lake Street initiated coverage of Olo with a Buy rating and $7.50 price target. Recent customer losses at Subway and Wingstop have investors questioning the defensibility of Olo’s restaurant technology, but the firm’s research indicates these departures “are the exception, not the rule” and believes a return to positive customer location comps in 2024 and continued increasing in average revenue per unit gives “savvy buyers” an opportunity to “scoop up a growing, profitable, market-leading company trading at a discount to peers.”