Wingstop initiated with a Neutral on valuation at Guggenheim

As previously reported, Guggenheim initiated coverage of Wingstop with a Neutral rating and no price target. Wingstop has “clear long-term tailwinds,” substantial white space opportunity and structural market share gains for chicken relative to beef, says the firm, which expects 2023 and 2024 sales and earnings growth to outpace sell-side expectations. While this dynamic should provide near-term and medium-term support for the valuation, the firm also believes material upside to the current share price would require assuming a discount rate above where it is comfortable in the current interest rate environment.