Maintain Perform Rating of Dunkin' Brands Inc.
- July 22, 2020
Oppenheimer Analysts warming up to Dunkin's risk/reward tradeoff
Following Oppenheimer analysts' updated analysis ahead of second quarter earnings, our team believes the setup for Dunkin's risk/reward tradeoff is improving.
Our analysts currently remain at a Perform rating, but uncover reasons to begin warming up to the shares at current levels as:
1) we see levers that create low earnings risk through 2021 versus consensus
2) valuation sits at an interesting 10% and discount to peers, and
3) while Dunkin's sales recovery is tempered by its morning day-part reliance, recent trends appear to be outperforming coffee peers and the near-term expectation path remains low
We publish an updated model into second quarter results and sit $0.04 above consensus in 2021.
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