Will This Price Target Increase Help Sonic Corp (SONC) Today?

NEW YORK (TheStreet) -- Sonic Corp (SONC) has had its price target upped to $19 from $18, UBS said Tuesday. The firm said it sees the stock moving slightly higher due to same-store sales momentum, effective labor cost management and lower-than-anticipated winter weather expenses. 

However, the firm reiterated a "sell" rating.

"While upcoming growth initiatives spur optimism, increased competition across QSR and loss of premium product mix to fast casual could create sss disappointments," analysts wrote in the report. 

"Further, while target new unit returns in the high-teens for core markets are decent, growth opportunities there are limited and returns in new markets are unclear given uncertain sales levels post-honeymoon."

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Separately, TheStreet Ratings team rates SONIC CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SONIC CORP (SONC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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