HSBC Upgrades Krispy Kreme (DNUT) to Buy

HSBC analyst Sorabh Daga upgraded Krispy Kreme (NASDAQ: DNUT) from Hold to Buy with a price target of $14.00.

The analyst comments: "Upgrade to Buy (from Hold) on our unchanged target price of USD14, implying c25% upside: Our forecasts are unchanged pending segment details from management. While the stock has pulled back 26% YTD, the operating outlook has improved with the McDonald's announcement in March 2024 and a potential debt reduction with today's announcement. In addition to these moves, we would like to see clearer disclosure of the operating metrics of mature hubs, developing hubs, and hubs without spokes so as to better understand the progression of the business strategy, which is to deploy more capital that could drive incremental ROIC so that the firm can exceed its cost of capital faster."

For an analyst ratings summary and ratings history on Krispy Kreme click here. For more ratings news on Krispy Kreme click here.

Shares of Krispy Kreme closed at $10.71 yesterday.

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