Wunderlich Securities Sets Upbeat FY15 Outlook For Sonic Corporation

In a report published Wednesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $26.00 price target on Sonic Corporation (NASDAQ: SONC).

In the report, Wunderlich Securities noted, “Sonic sets upbeat FY15 outlook. Yesterday after market close, Sonic prereleased initial FY15 guidance including EPS growth at the higher end of its longer-term 14% to 20% EPS growth target. We believe that reflects management's confidence in its business plan to generate strong, sustained operating results and return its accelerating FCF to its shareholders. We project Sonic operating trends to accelerate through FY2015 benefiting from its sales-driving technology initiatives and ongoing menu innovation. Combined with its margin-building programs, Sonic's unique drive-in franchise model appears poised to continue to outperform most fast food peers. We reiterate our Buy rating and PT of $26.”

Sonic Corporation closed on Tuesday at $21.55.