NEW YORK (TheStreet) -- Burger King Worldwide (BKW) shares are experiencing volatility in early market trading on Wednesday, trading at about $32.23, despite the fast food restaurant chain being upgraded to "outperform" from "sector perform" by analysts at RBC before the opening bell today.
The firm also raised the stock's price target to $38 from its previous $30 view, representing a potential 17% upside from the stock's opening price.
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The firm believes that the company's pending merger with Canadian coffee chain Tim Hortons (THI) will prove to be a windfall for the two companies who combined will have 18,000 stores and $23 billion in annual sales.
The tax inversion deal which relocates Burger King's headquarters to Canada is also expected to save the company millions in taxes every year.
TheStreet Ratings team rates BURGER KING WORLDWIDE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BURGER KING WORLDWIDE INC (BKW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."