Wedbush analyst Nick Setyan initiated Sonic with an Outperform rating and $42 price target, telling investors in a research note that he believes Sonic may be the best-positioned QSR burger chain to gain near- to medium-term transaction share in the category and that Sonic is well-positioned to sustain greater than 50 basis points of transaction growth annually through 2021. Given Setyan's expectation that Sonic is poised to be the net category transaction share gainer through fiscal 2020-2021, and his expectation that Sonic could deliver annual free cash flow per share growth of 26%, he contends that a premium valuation is justifiable.