El Pollo Loco's stock climbed 1.8% in premarket trade Wednesday, after Morgan Stanley analyst John Glass upgraded it to equal weight from underweight, saying the recent selloff has made it more attractive. The stock, which went public on July 25, had dropped 30% so far this month through Tuesday, when it closed at $25.65, but was still 71% above its initial-public-offering price of $15. "While we have always been proponents of [El Pollo Loco] as a strong regional brand with sound expansion plans, valuation kept us cautious as the post-IPO valuation made shares the most expensive even of its highest-growth peers," Glass wrote in a research note to clients. He has a $25 price target on the stock.
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