Investing.com – Krispy Kreme stock (NASDAQ): fell 3.5% Thursday, as HSBC downgraded stock to keep from buy and set a target of $14
Analysts had previously set a target of $25 for the stock. Krispy Kreme traded below the revised target in today’s session.
The company-owned donut chain will be able to compete with the norms in the industry of franchising outlets. According to HSBC analysts this is putting pressure on the bank balance and affecting equity investors’ returns.
According to reports, the analysts’ reservations also have roots in the company’s IPO. After going private in 2016, the company saw its second market birth July 1.
In the IPO more than a third were given to minor shareholders, which was larger than the float. The lock-in on that equity expires at year’s end. According to reports, HSBC analysts think that this overhang continues to exist on the stock.
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