Portillo's is 'unique' with large growth potential- Deutsche Bank

Portillos

29/09/2022 17:02

** Analysts at brokerage Deutsche Bank initiate coverage of
Portillo's  PTLO.O  with a "hold" rating and a price target of
$22, saying it is a unique concept with potential for large
growth
    ** The uniqueness of the concept immediately stands out
given the restaurant chain's industry-leading average unit
volumes of nearly $8 million, writes DB analyst Brian Mullan
    ** Mullan adds Portillo's shows nice balance across its
business, including in menu, daypart and sales channels
    ** Low prices are a key differentiating attribute for
Portillo's and that would be very difficult to replicate,
especially given the quality of its food, adds Mullan
    ** Current average rating on Wall Street is "buy" and median
PT is $26.50, according to Refinitiv
    ** Portillo's shares, down 5.7% at $20.06 amid broader
declines, have fallen nearly 47% this year
 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))