UBS Group Forecasts Strong Price Appreciation for Portillo's (NASDAQ:PTLO) Stock

Key Points

• UBS raised its Portillo’s price target to $7 from $4.50 but maintained a neutral rating, implying just 1.6% upside from the prior close. Analysts’ consensus rating is Hold, with a $6.41 average target.
• Shares traded at $6.89 on Monday, near their 52-week high of $7.07.
• Portillo’s reported quarterly earnings of $0.06 per share, beating the $0.03 consensus estimate, while revenue rose 7% year over year to $194.07 million.

Portillo's (NASDAQ:PTLO - Get Free Report) had its price target boosted by investment analysts at UBS Group from $4.50 to $7.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential upside of 1.60% from the company's previous close.

Other equities analysts have also issued research reports about the stock. Stephens boosted their price objective on shares of Portillo's from $5.00 to $7.00 and gave the company an "equal weight" rating in a research report on Friday. Robert W. Baird raised shares of Portillo's to a "hold" rating in a research report on Monday, August 24th. Wall Street Zen upgraded Portillo's from a "sell" rating to a "hold" rating in a research note on Sunday. DA Davidson upped their target price on Portillo's from $5.00 to $7.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Portillo's in a research report on Friday, October 30th. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $6.41.

Portillo's Price Performance

Portillo's stock traded up $0.25 during trading hours on Monday, hitting $6.89. The stock had a trading volume of 2,898,284 shares, compared to its average volume of 1,725,003. Portillo's has a 1-year low of $3.29 and a 1-year high of $7.07. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.26 and a quick ratio of 0.20. The stock's fifty day moving average is $4.31 and its two-hundred day moving average is $4.83. The stock has a market capitalization of $523.25 million, a price-to-earnings ratio of 31.32, a PEG ratio of 5.86 and a beta of 1.51.

Portillo's (NASDAQ:PTLO - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.03. Portillo's had a net margin of 2.25% and a return on equity of 3.41%. The firm had revenue of $194.07 million during the quarter, compared to the consensus estimate of $193.18 million. During the same period last year, the firm posted $0.02 EPS. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. As a group, analysts predict that Portillo's will post 0.19 earnings per share for the current fiscal year.

Insider Activity

In other Portillo's news, Director I Jr purchased 65,355 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was acquired at an average cost of $4.59 per share, with a total value of $299,979.45. Following the acquisition, the director owned 551,770 shares of the company's stock, valued at approximately $2,532,624.30. This represents a 13.44% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 6.34% of the company's stock.

Institutional Trading of Portillo's

Hedge funds have recently made changes to their positions in the stock. Essential Partners LLC boosted its stake in Portillo's by 83,350.0% during the 1st quarter. Essential Partners LLC now owns 5,007 shares of the company's stock valued at $26,000 after purchasing an additional 5,001 shares during the period. Kestra Advisory Services LLC bought a new stake in shares of Portillo's in the 3rd quarter worth approximately $68,000. Russell Investments Group Ltd. lifted its position in shares of Portillo's by 283.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 36,556 shares of the company's stock valued at $173,000 after acquiring an additional 27,014 shares during the last quarter. Deutsche Bank AG boosted its position in shares of Portillo's by 29.5% in the 2nd quarter. Deutsche Bank AG now owns 65,667 shares of the company's stock valued at $311,000 after purchasing an additional 14,973 shares during the period. Finally, Capstone Financial Advisors Inc. boosted its holdings in shares of Portillo's by 34.0% in the second quarter. Capstone Financial Advisors Inc. now owns 78,745 shares of the company's stock worth $373,000 after buying an additional 20,000 shares during the period. Institutional investors own 98.34% of the company's stock.

Portillo's Company Profile

Portillo's, Inc operates a chain of fast-casual restaurants known for Chicago-style food. Its menu features Italian beef and Italian sausage sandwiches, Chicago-style hot dogs, hamburgers, chicken sandwiches, salads, french fries, shakes and other desserts.

The company traces its origins to 1963, when Dick Portillo opened a small hot dog stand called The Dog House in Villa Park, Illinois. Portillo's has since expanded from its Chicago-area roots into a multi-state restaurant business, with locations primarily in the United States.

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