Morgans initiates Australia's Guzman y Gomez with 'add' rating
** Analysts at Morgans initiate coverage on Australia's Guzman y Gomez GYG.AX with "Add" rating andprice target of A$30.8
** Broker sees FY26 EBITDA growth of 40.6%, with acceleration in earnings expected to continue into FY27
** GYG fastest-growing quick service restaurant in Australia - Morgans
** Says fast food chain, which competes with Chipotle CMG.Nand Wingstop WING.O, trades at higher EV/EBITDA premium to other ASX-listed peers
** Brokerage believes co has far superior growth profile and its multiples look more reasonable when compared to high-growth U.S. peers
** We believe investors buying into GYG will be well rewarded as co realises long-term growth potential and its earnings benefit from strong operating leverage - Morgans
** Brokerage notes co has built growth foundations in three major overseas markets - Japan, Singapore and U.S.
**Co currently expecting to open 30 to 40 new restaurants in Australia per annum
** Stock began trading on June 20 at A$30, a 36.4% premium to its IPO price of A$22
Reporting by Rishav Chatterjee in Bengaluru
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
