Dunkin' Brands Group Inc. (DNKN)

[TFMG]

$DNKN DUNKIN IS BREAKING OUT, BULLISH CHART

The stock of NASDAQ:DNKN has gained great momentum in recent months, continuing a six quarter winning streak on earnings beats. The company continues to grow at pace while introducing
new menu items , loyalty programs and digitization. The stock does have a considerably high valuation with a 28.36 P/E ratio , which makes it interesting to see how analysts will rerate the stock now it is above the average target price. Headwinds are ahead for the brand as the labour market is becoming very tight and competition fierce, this is however slightly offset by the reduction in coffee costs. The chart is extremely bullish with a horizontal breakout and a inverse H&S playing out on strong volume , while indicators are all bullish . There may be a better opportunity on a pullback to enter the stock, our upside target is $85.