Wedbush: buy this restaurant stock 'that will see cost deflation in 2022’

Wedbush Securities added Wingstop Inc to its list of "Best Ideas" on Wednesday.
Analyst Nick Setyan says the stock could climb to $165 or 45% up from here.
WING is well-positioned for both recessionary and expansionary environments.

Better days are coming for Wingstop Inc (NASDAQ: WING) shareholders, says a Wedbush analyst who added the restaurant company to his list of “Best Ideas” on Wednesday.

Nick Setyan assigns a $165 price target to Wingstop

Nick Setyan rates WING at “outperform” with a price target of $165 a share that represents a 45% upside from here. In a note this morning, he said:

In its latest reported quarter, Wingstop’s domestic same-store sales were up 7.5%, helping total revenue pop up 13.8% on a year-over-year basis.

Sell-off made Wingstop a great buying opportunity

Wingstop has had a rough start to the year, with the stock down more than 30% YTD, which Setyan says makes it attractive on valuation. He added:

Wingstop has a history of doing well in times when commodity prices go up as well as when they come down. The chain of nostalgic, aviation-themed restaurants recently debuted in Spain as part of its broader push into international markets.