Wells Fargo Initiates Coverage of Burger King with a "Market Perform" Rating (BKW)

Wells Fargo Initiates Coverage of Burger King with a “Market Perform” Rating (BKW)


Wells Fargo analysts started coverage of Burger King Worldwide Inc (BKW) with a tepid rating on Friday, as the fast food restaurant operator’s current valuation already prices in potential earnings growth.

The analysts rate BKW as “Market Perform” with a price target range between $21 and $22. This valuation range suggests a 3.6% to 8.5% upside to Thursday’s closing price of $20.27.

Wells Fargo analyst Jeff Farmer commented, “We expect limited multiple expansion in FY2013 based on: (1) decelerating SSS growth in FY2013 and (2) our view that current valuation reflects BKW’s guidance for margin expansion and EPS growth in FY2013 and FY2014.”

Burger King shares were inactive during pre-market trading on Friday. The stock is up +23.3% year-to-date.

The Bottom Line
Shares of Burger King Worldwide (BKW) have a dividend yield of 1.18% based on last night’s closing price of $20.27 and the company’s annualized dividend payout of 24 cents per share.

Burger King Worldwide Inc (BKW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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