J.P. Morgan Remains Bullish on The Wendy’s Company (WEN)

The Wendy’s Company (NASDAQ:WEN) is one of the best small cap low volatility stocks to invest in. On August 11, analyst Rahul Krotthapalli from J.P. Morgan maintained a Buy rating on The Wendy’s Company (NASDAQ:WEN) and set a $13.00 price target.

Jim Cramer on The Wendy’s Company (WEN): “I'm Reiterating My Get Out of Wendy's Call”

A closeup of a juicy hamburger sandwich with tomatoes and lettuce, on a sesame bun.

The analyst based the rating on The Wendy’s Company’s (NASDAQ:WEN) stabilization and the potential improvement in its store economics, factors supported by attractive free cash flow yields.

Krotthapalli sees The Wendy’s Company (NASDAQ:WEN) as a value-oriented opportunity despite a challenging outlook and recent performance, expecting free cash flow yields of 6.6% and 8.4% for fiscal year 2026 and 2027, respectively.

Another key consideration supporting the analyst’s optimistic outlook is The Wendy’s Company’s (NASDAQ:WEN) focus on reducing capital intensity and reallocating funds for faster deleveraging or shareholder returns.

The Wendy’s Company (NASDAQ:WEN) operates, develops, and franchises a system of quick-service restaurants. The company’s operations are divided into the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development.

While we acknowledge the potential of WEN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WEN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.