El Pollo Loco Holdings Inc. was upgraded at Stifel Nicolaus to its highest buy rating from hold, which cited an attractive share price, it’s position in the growing Mexican cuisine market and a nimble, operations-focused management. Analyst Paul Westra set a stock price target at $17, which is 35% above Thursday’s closing price of $12.62. The stock has tumbled 41% over the past three months, compared with a 6.3% decline in the S&P 500. It closed at a record low of $12.26 on Aug. 21, or 18% below its initial public offering price of $15. Westra said he believes the current stock price underestimates the company’s growth option, and praised management for its flexibility in making quick adjustments to the company’s value proposition to reverse recent traffic trends. The stock was still inactive in premarket trade.
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