Fogo de Chao Inc.’s stock climbed 2.5% in premarket trade Wednesday, after J.P. Morgan upgraded the Brazilian steakhouse chain, citing attractive upside share-price potential. Analyst John Ivankoe raised his rating to overweight from neutral. His $24 stock price target is 22% above Tuesday’s closing price of $19.71. Ivankoe said despite better-than-expected second-quarter results, the continued to trend lower since going public June 19, closing Monday at $18.48, or 7.6% below its initial public offering price of $20, before bouncing 6.6% on Tuesday to close just below the IPO price. “While it is ideal to ‘bottom tick’ a stock on an upgrade, sometimes that’s simply not possible,” Ivankoe wrote in a note to clients. He recommends investors “take advantage of this weakness to now overweight shares.”
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