Stephens bullish on Noodles & Co; sees no direct competition

Noodles & Co

06/10/2021 16:55

** Shares of U.S. pasta chain Noodles & Co  NDLS.O  rose as
much as ~8% to an over 3-month high of $13.26 
    ** NDLS last up more than 6%, on track for best day since
June in second straight session of gains
    ** Brokerage Stephens initiates coverage with "overweight"
rating; sets PT at $18, implying an upside of 46.6% to stock's
last close and above median PT of $14.75
    ** There is almost no direct competition to NDLS in the
fast-casual pasta space that has a similar food offering to co -
brokerage
    ** Says NDLS to benefit from its unique menu; co started
offering healthier options in 2018 that are now 14% of its sales
    ** Notes co's e-commerce business is a strong area of
growth, adding digital sales comprised 56% of total sales in Q2
    ** Current avg. rating on NDLS among 6 analysts is "buy"
    ** With session's gains, NDLS up ~65% this year


 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))