Wall Street Analysts See a 33.5% Upside in El Pollo Loco (LOCO): Can the Stock Really Move This High?

Core Viewpoint - El Pollo Loco Holdings (LOCO) has seen a 7.1% increase in share price over the past four weeks, closing at $10.24, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $13.67, representing a 33.5% upside [1][2]. Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $3.79, where the lowest estimate of $11.00 indicates a 7.4% increase, and the highest estimate of $18.00 suggests a 75.8% increase [2]. - A low standard deviation among price targets indicates a strong agreement among analysts regarding the stock's price movement, which can be a useful starting point for further research [9]. Earnings Estimates and Analyst Sentiment - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases, as indicated by a 6.7% increase in the Zacks Consensus Estimate over the past month [11][12]. - LOCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [13]. Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of potential gains, the implied direction of price movement appears to be a valid guide for investors [14].