First Watch Added as Hedgeye Long Idea with 30%+ Upside Potential

First Watch (NASDAQ:FWRG) has been added as a new long idea by Hedgeye, with the potential for 30%+ upside. Hedgeye analyst Bennett Cheer applied an 11x EV/EBITDA multiple to 2026 estimates, resulting in a price target above $22. This represents a significant upside from the current stock price. The analyst believes the real value of the company lies in its long-term growth potential.

Hedgeye has added First Watch (NASDAQ:FWRG) to its long ideas list, with the potential for a significant upside of 30% or more. The analyst, Bennett Cheer, applied an 11x EV/EBITDA multiple to the company's 2026 estimates, resulting in a price target above $22. This represents a substantial increase from the current stock price of $17.35 [3].

Cheer believes that the real value of First Watch lies in its long-term growth potential. The analyst cited the company's focus on eggs and griddle items, which have shown strong demand in recent years. Additionally, the analyst noted that the company has been cautious about its cash burn and has been working to improve its operational efficiency [1].

While the company has faced challenges in the past, such as weak same-store sales trends and a short cash runway, Cheer believes that these issues can be addressed with the right management and strategy. The analyst also noted that the company has been able to maintain a positive operating margin of 1.7% over the past year [1].

The addition of First Watch to Hedgeye's long ideas list comes as the company is working to expand its footprint and improve its profitability. The analyst believes that the company's long-term growth potential makes it an attractive investment opportunity, despite the short-term challenges it has faced [1].

References:

[1] https://finance.yahoo.com/news/3-profitable-stocks-keep-off-043729725.html
[2] https://seekingalpha.com/news/4486154-delek-added-as-a-new-long-at-hedgeye
[3] https://stockinvest.us/stock/FWRG