Guggenheim lifts Wendy's (NYSE:WEN) to a Buy rating from Neutral.
The analyst team thinks valuation is attractive again on Wendy's after the recent decline in share price, noting that Wendy's trades with an implied free cash flow of +7% based on 2019 estimates.
Guggenheim expects the margin improvement at Wendy's to continue.
Shares of Wendy's are up 5.10% in premarket trading after the company set a new $175M buyback program and hiked its dividend.
Previously: Wendy's sets new $175M buyback program (Feb. 16)
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