Benzinga | Sep 20, 2021 11:00AM EDT

Why Piper Sandler Sees 38% Upside In Ruth's Hospitality?

* Piper Sandler analyst Nicole Miller Regan has upgraded Ruth's Hospitality Group Inc (NASDAQ:RUTH) to Overweight from Neutral with a price target of $28, up from $25 (representing an Upside of 38.72%).

* The analyst likes the company's balanced operating model with 50% company-owned and 50% franchise restaurants.

* Ruth's Hospitality has "balanced consumer positioning across social, local business and special occasions," Miller Regan adds.

* The analyst expects a "rapid industry recovery" alongside a return to company-owned development.

* Ruth's Hospitality had recently reported a 290% year-on-year growth in Q2 revenue, beating the consensus estimate of $106.68 million.

* Price Action: RUTH shares are trading higher by 0.10% at $20.25 on the last check Monday.