Shares of Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) are up 8.4% at $46.40 at last glance, after Truist Securities upgraded the stock to “buy” from “hold,” with a price-target hike to $55 from $51. The bull note follows last week’s fiscal second-quarter earnings report, which featured better-than-expected earnings and revenue, same-store sales growth of 4.7%, and a raised forecast. The restaurant chain also announced a $700 million reinvention plan spanning three years, which will include large menu changes.
Prior to CBRL’s 7.6% post-earnings move last Thursday, familiar support at the $40 level caught the stock’s extended pullback. The shares are fresh off their first weekly win in six weeks thanks to the report, though still down 12.2% year-to-date and 34.7% year-over-year.
Today’s upgrade is notable, as Truist is now one of just two analysts rating Cracker Barrel stock a “buy,” while the other eight in coverage carry a “hold” or worse. The 12-month consensus price target of $47.29 is a slim premium to current levels, leaving plenty of room for further upgrades and/or price-target hikes.
Meanwhile, short interest has been building amid the recent selloff, and now represents 14.5% of the stock’s available float. It would take shorts over four days to cover, at CBRL’s average pace of trading.
Financial Market Newsflash
No financial news published today. Check back later.
