Street View: Analysts raise PT on Aussie KFC and Taco Bell operator Collins Food

Collins Foods

28/06/2023 02:28

** Australia's KFC and Taco Bell chain operator, Collins
Foods  CKF.AX  on Tuesday had its biggest intraday jump in
nearly three years as it reported positive same-store sales
growth for the first seven weeks of FY24
    ** Shares of the company are up 4.5% 
    ** Co posted FY underlying net profit after tax of A$57.9
million ($38.69 million), compared with UBS' estimate of A$54.4
million
    
EARNINGS UPGRADE FROM BROKERAGE POST RESILIENT FY  
    ** Analysts at Canaccord Genuity raise Price Target on
Australia's Collins Foods  CKF.AX  to A$8.80/share from
A$7.25/share
    ** Canaccord raises net profit after tax estimates on co by
11% for FY24 and EBITDA expectations by 7%
    ** Brokerage sees evidence of strong FY24 same store sales
momentum as co adeptly executed price and marketing strategies
    ** Macquarie raises Price Target to A$9.70 from A$8.20 on
the back of upgrading earnings forecasts for FY24 to FY26
    ** Analysts at Morgans also lift PT to A$10.50 from A$9.50,
expects sales momentum likely to be 'sustained'
    ** UBS in a note on Tuesday, summarised the results as
"strong and topline" 
    ** Three of eight analysts rate the stock "buy" or higher
and five "hold"; their median PT is A$9.16 – Refinitiv data
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))