Restaurant Brands price target raised to $74 from $65 at BofA

BofA raised the firm’s price target on Restaurant Brands (QSR) to $74 from $65 and keeps an Underperform rating on the shares. The acquisition of Carrols (TAST) has a “minimal financial impact,” but is “transformative” and represents a “big change in philosophy” as the U.S. system will be more company operated with a less concentrated franchisee base after the deal, the analyst tells investors. The firm, which updated its model for the Carrols acquisition and raised its target to reflect market multiple expansion, but reiterates an Underperform rating on what it sees as a negative risk/reward.