Morgan Stanley has revised its outlook on Portillo’s (PTLO, Financial), reducing the stock's price target from $13 to $12 while maintaining an Equal Weight rating. Analyst Brian Harbour explains that this adjustment comes as part of a wider expectation of slowing growth within the U.S. food industry. Initially, the firm projected a 4.8% year-over-year increase in industry demand, but this has now been reevaluated to a more modest 4.1% growth.
The revision occurs ahead of the first quarter earnings reports, though the analyst suggests that these results are not the primary focus at this time. The update reflects broader market conditions, including the temporary suspension of tariffs, which have influenced the firm's current economic outlook for the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Portillos Inc (PTLO, Financial) is $16.40 with a high estimate of $21.00 and a low estimate of $12.00. The average target implies an upside of 36.04% from the current price of $12.06. More detailed estimate data can be found on the Portillos Inc (PTLO) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Portillos Inc's (PTLO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Portillos Inc (PTLO, Financial) in one year is $15.65, suggesting a upside of 29.82% from the current price of $12.055. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Portillos Inc (PTLO) Summary page.
