Maxim Group Reiterates Buy Rating for Del Taco Restaurants (TACO)

Maxim Group reaffirmed their buy rating on shares of Del Taco Restaurants (NASDAQ:TACO) in a report issued on Monday. Maxim Group currently has a $20.00 price target on the restaurant operator’s stock.

“We maintain our Buy rating and $20 price target on Del Taco (TACO) following management’s presentation at the ICR Conference in Orlando earlier today. Management indicated it was comfortable with 4Q17 (December) guidance, which implies about a +3% comp for the quarter. Management anticipates mid-single-digit comp growth and unit growth for 2018, as well as a “significant” benefit from a lower corporate tax rate. We maintain our EPS estimates of $0.19 for 4Q17, $0.55 for 2017, and $0.75 for 2018, though raise our 2019 EPS estimate to $0.82 (from $0.81) to reflect our outlook for accelerated share buybacks post-tax reform.”,” Maxim Group’s analyst commented.

Several other brokerages have also issued reports on TACO. Zacks Investment Research upgraded Del Taco Restaurants from a hold rating to a buy rating and set a $18.00 target price for the company in a research report on Wednesday, September 27th. Wedbush restated a buy rating and set a $17.00 target price on shares of Del Taco Restaurants in a research report on Friday, October 20th. BTIG Research dropped their target price on Del Taco Restaurants from $19.00 to $17.00 and set a buy rating for the company in a research report on Friday, October 20th. Jefferies Group restated a buy rating and set a $16.00 target price on shares of Del Taco Restaurants in a research report on Thursday, October 12th. Finally, TheStreet lowered Del Taco Restaurants from a b- rating to a c+ rating in a research report on Friday, October 20th. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Del Taco Restaurants currently has an average rating of Buy and an average price target of $16.67.

Shares of Del Taco Restaurants (NASDAQ TACO) traded up $0.25 during trading hours on Monday, hitting $13.37. The company’s stock had a trading volume of 361,600 shares, compared to its average volume of 538,414. Del Taco Restaurants has a fifty-two week low of $11.58 and a fifty-two week high of $15.99. The stock has a market capitalization of $517.11, a price-to-earnings ratio of 23.88, a PEG ratio of 1.29 and a beta of -0.29. The company has a quick ratio of 0.24, a current ratio of 0.29 and a debt-to-equity ratio of 0.42.

Del Taco Restaurants (NASDAQ:TACO) last announced its earnings results on Thursday, October 19th. The restaurant operator reported $0.13 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.13. Del Taco Restaurants had a return on equity of 5.82% and a net margin of 4.60%. The business had revenue of $110.99 million during the quarter, compared to analyst estimates of $110.46 million. During the same quarter in the previous year, the business earned $0.13 earnings per share. The company’s revenue for the quarter was up 6.3% compared to the same quarter last year. analysts expect that Del Taco Restaurants will post 0.54 earnings per share for the current fiscal year.

In related news, SVP David Pear sold 9,260 shares of the business’s stock in a transaction that occurred on Monday, December 11th. The stock was sold at an average price of $12.25, for a total value of $113,435.00. Following the completion of the sale, the senior vice president now owns 115,412 shares in the company, valued at $1,413,797. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Lawrence F. Levy purchased 200,000 shares of the stock in a transaction that occurred on Monday, October 23rd. The stock was purchased at an average price of $12.54 per share, with a total value of $2,508,000.00. Following the acquisition, the director now directly owns 18,356 shares of the company’s stock, valued at approximately $230,184.24. The disclosure for this purchase can be found here. 14.60% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in TACO. Schwab Charles Investment Management Inc. boosted its holdings in shares of Del Taco Restaurants by 40.9% in the second quarter. Schwab Charles Investment Management Inc. now owns 49,600 shares of the restaurant operator’s stock valued at $682,000 after purchasing an additional 14,400 shares during the period. Rhumbline Advisers boosted its holdings in shares of Del Taco Restaurants by 50.3% in the second quarter. Rhumbline Advisers now owns 37,980 shares of the restaurant operator’s stock valued at $522,000 after purchasing an additional 12,714 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of Del Taco Restaurants by 31.1% in the second quarter. Bank of New York Mellon Corp now owns 149,440 shares of the restaurant operator’s stock valued at $2,055,000 after purchasing an additional 35,464 shares during the period. AXA purchased a new stake in shares of Del Taco Restaurants in the second quarter valued at approximately $293,000. Finally, Martingale Asset Management L P purchased a new stake in shares of Del Taco Restaurants in the second quarter valued at approximately $200,000. Hedge funds and other institutional investors own 81.39% of the company’s stock.

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About Del Taco Restaurants

Del Taco Restaurants, Inc is an operator and franchisor of restaurants featuring made-to-order cuisine, including both Mexican inspired and American classic dishes. As of January 3, 2017, the Company operated 551 Del Taco restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes.

Analyst Recommendations for Del Taco Restaurants (NASDAQ:TACO)

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