UPDATE: Piper Jaffray Upgrades Sonic

Nicole Miller Regan of Piper Jaffray on Tuesday upgraded shares of Sonic Corporation (NASDAQ: SONC) to Overweight from Neutral with a price target raised to $38 from a previous $28.

According to the analyst, the fast-food chain will benefit from product innovation, strong marketing and technology investments that will increase frequency of consumer visits. Miller Regan adds that Sonic will also benefit over the longer-term due to a re-acceleration of new unit growth.

Shares traded recently at $31.78, up 3.5 percent.