UPDATE: Morgan Keegan Raises PT to $8.50 on Sonic

Morgan Keegan raises its target price on Perform-rated Sonic (NASDAQ: SONC) by half a dollar to $8.50 on improved traffic trends due to weather.

Morgan Keegan says, "Raising Q2 (Feb) SSS. We project Sonic sys-SSS have improved considerably, now projected in +6%-range (+5.0% co. +6.0% franch.) from 0.0% aided by favorable weather, improved breakfast and chili-cheese promo. sales, modest menu-pricing. Better-trends could continue. Raising FY12 (Aug) sys-SSS to +2.4% from 0.0% reflecting improved marketing (media, messaging, buy), better upcoming new product (food) news, modest menu pricing -- possibly supported by return of Those2Guys, whose comedic-banter was front-seat face of older Sonic TV-spots."

SONC closed at $7.65 a share on Wednesday.