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Fly News Breaks for September 4, 2019
STKS
Sep 4, 2019 | 06:05 EDT
Piper Jaffray analyst Nicole Miller Regan downgraded One Group Hospitality to Neutral from Overweight and lowered her price target for the shares to $4 from $5. The analyst sees potential near-term disruption from the company's plans to acquire casual dining brand Kona Grill. She highlights the potential pressures and time involved in simultaneously turning around and integrating a new brand into a portfolio.
News For STKS From the Last 2 Days
STKS
Mar 28, 2024 | 07:38 EDT
After One Group announced its strategic acquisition of Safflower Holdings, owner of the U.S. teppanyaki and sushi restaurant brands Benihana and RA Sushi, for $365M, Lake Street analyst Mark Smith said the firm views the economics of the deal as "attractive" and that both the acquired brands are highly complementary to the company's current STK and Kona Grill brands. This deal is "not only expected to immediately enhance the bottom line, but also to significantly increase free cash flow, providing a steady foundation for debt reduction and shareholder returns," says the firm, which reiterates its Buy rating and $8 price target on One Group shares.
STKS
Mar 27, 2024 | 10:54 EDT
Wedbush keeps a Neutral rating on One Group Hospitality with a $5 price target after the company acquire Safflower Holdings, owner of Benihana and RA Sushi. Given the financing costs, the analyst is not sure to what extent any benefit accrues to common equity holders from the deal. Visibility into forward fundamentals of Benihana is limited "as any full service restaurant," the analyst tells investors in a research note. The firm views One Group's current valuation as an appropriate.