NEW YORK (TheStreet) -- Shares of El Pollo LoCo Holdings (LOCO) are gaining, higher by 1.79% to $26.11 in early market trading Wednesday, after the fast casual restaurant chain company had its rating raised to "equal weight" from "underweight" by analysts at Morgan Stanley this morning, based on valuation.
Analysts at the firm raised its price target to $25 from $23, and said the company's recent refinancing will add approximately 10% to its earnings in 2015.
Morgan Stanley analysts noted that El Pollo LoCo shares were only trading at a 6% premium to peers during its post-IPO peak, and believes valuations are now in-line with fast casual average.
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El Pollo Loco, Spanish for "The Crazy Chicken," specializes in fire grilling citrus-marinated chicken in front of its customers with more than 400 company-owned and franchised restaurants in the Southwest.