Australia's Guzman Y Gomez gains; UBS upgrades stock, raises PT

Guzman y Gomez

15/01/2025 02:41

** Guzman Y Gomez  GYG.AX  gains 5.4% to A$40.395; top
gainer on S&P/ASX 200 index  .AXJO 
    ** UBS upgrades to "neutral" from "sell"; raises PT to A$40
from A$37
    ** Says Mexican quick service restaurant chain's unexpected
same-store sales growth (SSSg) and EBITDA margin rise may
pleasantly surprise market
    ** Ups FY25/26/27 EPS estimates, citing higher Australian
SSSg and EBITDA, surpassing prospectus and market consensus
    ** Adds menu innovation, broader daypart participation,
delivery growth and increased opening hours key drivers for co
    ** Sees potential for net new store growth, with 15 opened
in H1 of 2025; forecasts 31 for FY25
    ** Expects Australia and Asia-adjusted EBITDA/network sales
to swell from 4.1% in FY23 to 6.9% in FY26; growth projected
beyond FY26
    ** Stock rated "hold" on avg; median PT is A$39.57 – LSEG
    ** GYG gained ~35% in 2024 after debuting in late June

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))