On Friday, Loop Capital reaffirmed its positive stance on Texas Roadhouse stock (NASDAQ:TXRH), maintaining a Buy rating and a $215.00 price target.
The firm's analysts highlighted the restaurant chain's consistent performance, noting that Texas Roadhouse has surpassed comparable sales expectations in ten of the previous eleven quarters.
The analysts predict a significant upside to the company's comparable sales growth and earnings per share (EPS) estimates for the year 2025.
The analysts at Loop Capital focused on various scenarios that could lead to a considerable rise in earnings for Texas Roadhouse if the trend of beating sales expectations continues through 2025.
The firm's analysts said the "substantial earnings upside potential is a key reason why we remain positive on TXRH despite the recent surge in the shares, which are up ~50% over the last 12 months."
Loop Capital's valuation of Texas Roadhouse is based on a 19 times multiple of their 2025 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) estimate.
The $215.00 price target suggests that the analysts see a continued growth trajectory for the company, underpinned by strong sales performance.
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