Krispy Kreme Bounces Off Low After Positive Wall Street Notes
2022.05.13 20:50
By Liz Moyer
Investing.com — Krispy Kreme Inc (NASDAQ:DNUT) shares are bouncing off the 52-week low they hit earlier this week, jumping 10% on Friday after positive research notes from Wall Street analysts.
HSBC raised its rating to buy from hold after the donut chain posted better than expected first quarter results this week. Krispy Kreme outlined success with Valentine’s and St. Patrick’s Day campaigns and sales of specialty items such as donuts made with Twix and Rolo candies, saying there is an opportunity for more such specialty products. Revenue rose 15.8% to $372.5 million, and swung to a profit from a loss last year, beating expectations.
Morgan Stanley kept the stock at overweight but called the quarter “surprisingly robust.” It lowered the price target to $17 from $18. The shares are currently trading around $14.37 each.
Krispy Kreme shares reached their low for the past year on Tuesday, before earnings, and they are down 23% since the beginning of January.
The company reaffirmed 2022 guidance for a profit of 38 cents to 41 cents a share and revenue of $1.53 billion to $1.56 billion. Morgan Stanley said 10% to 12% organic year-over-year revenue growth seemed conservative.
