Guzman Y Gomez Loses Bull Despite Strong Earnings Outlook
Dow Jones
Aug 05
0304 GMT - Guzman Y Gomez's recent share-price rally prompts UBS analysts to lower their recommendation on the Australian fast-food provider to neutral from buy. The Mexican-themed chain operator was cut from Australia's S&P/ASX 200 benchmark index in June, with its stock almost 60% down on its record close, but has since gained more than 30%. This has left risk/reward balanced in the eyes of UBS analysts, who tell clients in a note that their focus at the upcoming annual result announcement will be on early fiscal 2027 sales and the company's margin guidance. The outlook for earnings growth remains strong but is priced in, they reckon. UBS raises its target price 17% to 28.00 Australian dollars. Shares are down 0.9% at A$24.76.
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