Texas Roadhouse initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst John Parke initiated coverage of Texas Roadhouse with an Equal Weight rating and $113 price target. The company’s industry-leading comps, quality execution and mid-single-digit unit growth warrant a premium valuation, the analyst tells investors in a research note. However, rising beef costs, moderating comps and a full valuation will likely limit the stock’s near-term upside, says the firm. As such, it looks for a better entry point.