UPDATE: Wunderlich Securities Raises PT On Sonic Following Great Q1F15 SSS/EPS

In a report published Wednesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating on Sonic Corporation (NASDAQ: SONC), and raised the price target from $28.00 to $33.00.

In the report, Wunderlich Securities noted, “Last night after market close, Sonic Corp. (SONC) reported stunningly good Q1F15 (Nov) SSS and EPS, further distancing itself from its Fast Food peers. EPS increased 38% to $0.18 (vs. our $0.17, Street $0.16) aided by sys-SSS of 8.5% -- its strongest quarterly SSS since early 2005. Given our confidence in the underlying momentum of its business, we are raising our 2015 and 2016 EPS estimates to $1.03 from $1.01, and to $1.22 from $1.18, respectively. Based on our revised estimates, SONC is trading at only 11.4x our CY15 EV/EBITDA and 10.9x CY16, and below its fast food peers trading on average at 12.8x and 11.7x, respectively. Factoring a 13.0x multiple to our CY16 projections, we are raising our PT to $33 from $28 and reiterate our Buy rating.”

Sonic closed on Tuesday at $27.09.