First Watch Restaurant Group (NASDAQ:FWRG) Stock Keeps Overweight Rating at Stephens

Key Points

• Stephens reaffirmed its Overweight rating on First Watch and set an $18 price target, implying about 32% upside from the stock’s current price.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus Buy rating and an average price target of $17.90.
• First Watch beat quarterly earnings expectations, reporting $0.08 per share versus $0.03 expected; revenue rose 10.7% year over year to about $349.9 million.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report)'s stock had its "overweight" rating reaffirmed by stock analysts at Stephens in a report issued on Wednesday, Benzinga reports. They presently have a $18.00 price target on the stock. Stephens's price target suggests a potential upside of 32.06% from the company's current price.

FWRG has been the subject of several other reports. Guggenheim lowered their target price on First Watch Restaurant Group from $21.00 to $20.00 and set a "buy" rating for the company in a report on Friday, August 7th. Wall Street Zen upgraded First Watch Restaurant Group from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Citigroup dropped their target price on First Watch Restaurant Group from $20.00 to $19.00 and set a "buy" rating on the stock in a research report on Wednesday, October 21st. Weiss Ratings raised shares of First Watch Restaurant Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, October 29th. Finally, Raymond James Financial lowered their price target on shares of First Watch Restaurant Group from $20.00 to $18.00 and set a "strong-buy" rating for the company in a research report on Friday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $17.90.

First Watch Restaurant Group Stock Performance

FWRG stock opened at $13.63 on Wednesday. The company has a current ratio of 0.27, a quick ratio of 0.22 and a debt-to-equity ratio of 0.44. The firm has a market cap of $841.11 million, a P/E ratio of 47.00, a P/E/G ratio of 58.49 and a beta of 1.00. First Watch Restaurant Group has a 12-month low of $9.88 and a 12-month high of $18.77. The stock's 50 day simple moving average is $11.38 and its 200 day simple moving average is $12.44.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.08 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.05. First Watch Restaurant Group had a net margin of 1.35% and a return on equity of 2.85%. The firm had revenue of $349.86 million during the quarter, compared to the consensus estimate of $348.99 million. During the same quarter in the previous year, the company posted $0.05 earnings per share. The firm's revenue was up 10.7% on a year-over-year basis. As a group, equities research analysts predict that First Watch Restaurant Group will post 0.14 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of First Watch Restaurant Group in the 2nd quarter worth approximately $58,445,000. The Manufacturers Life Insurance Company purchased a new stake in First Watch Restaurant Group during the second quarter valued at about $49,291,000. Bank of New York Mellon Corp acquired a new position in shares of First Watch Restaurant Group in the second quarter worth about $47,938,000. Bank of America Corp DE purchased a new position in shares of First Watch Restaurant Group in the second quarter worth approximately $13,783,000. Finally, Paralel Advisors LLC purchased a new position in shares of First Watch Restaurant Group in the second quarter worth approximately $11,601,000. Institutional investors own 96.11% of the company's stock.

First Watch Restaurant Group News Roundup

Here are the key news stories impacting First Watch Restaurant Group this week:

• Positive Sentiment: Q3 adjusted earnings were $0.08 per share, ahead of analysts’ $0.03 estimate and up from $0.05 a year earlier. Revenue rose 10.7% year over year to $349.9 million, slightly above expectations. Zacks earnings report
• Positive Sentiment: Management raised its long-term adjusted EBITDA growth target to more than 15% through 2028, strengthening the outlook for profit growth. Adjusted EBITDA outlook
• Positive Sentiment: The company plans 60 net-new system-wide restaurants in 2026 and is targeting about 55 openings in 2027, supporting continued expansion and revenue growth. Growth and expansion plans
• Neutral Sentiment: Same-restaurant sales grew 1.0%, a modest increase compared with total revenue growth; much of the overall sales expansion reflects the restaurant base growing. First Watch reported $4.8 million in net income and $39.7 million in adjusted EBITDA. Q3 financial results

First Watch Restaurant Group Company Profile

First Watch Restaurant Group, Inc operates a daytime-focused restaurant concept serving breakfast, brunch and lunch. Its restaurants offer made-to-order meals such as omelets, pancakes, French toast, sandwiches, salads and bowls, along with fresh juices, coffee and other beverages. The company generally does not serve dinner, positioning its restaurants around the daytime dining occasion.

First Watch restaurants emphasize fresh preparation and seasonal menu offerings, including items made with eggs, fruits, vegetables and other ingredients prepared in the restaurant.

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