Investing.com-- Truist Securities upgraded Wingstop Inc (NASDAQ: WING ) to “Buy” and raised its price target, citing stronger-than-expected same-store sales (SSS) trends and accelerating store development.

The brokerage upgraded the rating to "Buy" from “Hold”, significantly hiking its price target to $400 from $274.

In a research note, Truist analysts said they now expect Wingstop’s SSS to bottom in the second quarter of fiscal 2025 at -3.0%, improving from prior estimates of -5.0%, with a sharp rebound forecasted in the second half of 2025 and into 2026.

The firm’s proprietary card data indicated a notable reacceleration in May, while the rollout of “Smart Kitchen” technology and ongoing digital, marketing, and menu innovations are expected to support sales growth, Truist analysts said.

Truist also highlighted Wingstop’s rapid new unit expansion, noting store growth reached +15.8% in 2024, with guidance of 16–17% in 2025.

Analysts see long-term upside to the chain’s development targets, supported by strong unit economics and international growth.

The brokerage raised its 2025 and 2026 adjusted EBITDA estimates to $246.5 million and $301.5 million, respectively, above consensus.

While risks remain, including consumer pressure and international execution, Truist said Wingstop’s asset-light model and growth profile justify its premium valuation.