Stephens sees One Group Hospitality selloff as buying opportunity

Stephens analyst Joshua Long notes that shares of One Group Hospitality are trading down on Thursday following Wednesday’s announcement that the company had borrowed the full $50M from its delayed draw term facility that was recently added as a part of its amended credit facility. Although no immediate plans for the cash were detailed, the analyst was "encouraged" to read that there appear to be few limitations. He was "encouraged by the financial flexibility" offer by the additional $45M in cash and views the selloff as an opportunity to continue building a position in a small cap growth company that he believes is well-positioned to deliver meaningful sales, EBITDA, and unit growth, over time. Long has an Overweight rating on the shares with a price target of $15.