Guzman Y Gomez (ASX: GYG) Broker Ratings

Guzman y Gomez (ASX: GYG) Broker Ratings

09/04/2025

• Morgans has maintained its Add rating for Guzman y Gomez while reducing the target price to $38.00 from $42.50. The broker notes the company delivered another strong quarter, with third-quarter network sales up 23.6% and Australian comparable store sales rising 11.1%. Morgans attribute the slight deceleration in comp. sales to tougher comparisons, viewing the company's strong earnings trajectory and robust unit economics favourably despite modestly trimmed earnings forecasts.

• UBS has maintained its Neutral rating for Guzman y Gomez while lowering the target price to $35 from $40. The broker notes that third-quarter sales showed continued strength, with Australasian comparable-store sales up 11.1%, driven by menu innovation and strong daypart growth. UBS has trimmed underlying EBITDA forecasts by -5.9% to -11.0% over FY25-27, reflecting reduced growth expectations, tighter corporate restaurant margins in Australasia, and slower US progress.

• Morgan Stanley has maintained its Overweight rating for Guzman y Gomez with a target price of $42.00. The broker notes that the company reported 3Q25 comparable sales growth of 11.1% in Australia, improving from 8.7% in 1Q and 10.2% in 2Q. Third-quarter network sales advanced 23.6% to $285.9m. Morgan Stanley highlights a maiden dividend is payable in September 2025, with management aiming to distribute the majority of earnings while retaining flexibility for growth investment.

Guzman y Gomez Stock Price

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