Piper Sandler upgrades ONE Group Hospitality, shares jump

One Hospitality

20/09/2021 18:10

** Shares of upscale restaurants operator ONE Group  STKS.O 
up as much as ~13% to hit an over 1-month high at $11.69, after
Piper Sandler upgrades co on "rapid industry recovery"
    ** STKS, which owns the restaurant brands STK Steakhouse and
Kona Grill, last up ~6% at $11
    ** Brokerage raises to "overweight" from "neutral," noting
STKS' ability to maintain materially higher volumes at its
restaurant brands
    ** Raises PT to $17 from $12, implying an upside of 64% to
STKS' close on Friday
    ** Says STK Steakhouse's avg weekly sales were $288,000,
reflecting a 93% comp for the 2021 vs. 2019 period and more than
a 200% comp for the 2021 vs. 2020 period 
    ** Notes co's promotional efforts such as "date nights" from
Sunday to Wednesday have boosted traffic in the early week,
helping create a solid base from which to build as the corporate
occasion eventually returns
    ** Says risks including material inflation in beef,
recessionary periods and a seasonally slow Q3 are short-term
    ** With Monday's gains, stock has nearly tripled this year  

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