Miller Tabak Upgrades Buffalo Wild Wings (BWLD) (Update)

Update (9:40 a.m.): Updated with Thursday market open information.

NEW YORK (TheStreet) -- Miller Tabak upgraded Buffalo Wild Wings  (BWLD) to "buy" from "hold." The firm cited valuation and the company's higher sales and lower wing costs as reasons for the upgrade.

The stock was rising 3.13% to $131.10 shortly after the market opened on Thursday.

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Separately, TheStreet Ratings team rates BUFFALO WILD WINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BUFFALO WILD WINGS INC (BWLD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 27.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 82.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BWLD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BUFFALO WILD WINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BUFFALO WILD WINGS INC increased its bottom line by earning $3.06 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.06).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 66.9% when compared to the same quarter one year prior, rising from $10.71 million to $17.87 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BUFFALO WILD WINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: BWLD Ratings Report

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