BWLD Raises Guidance, Catches Upgrade

Buffalo Wild Wings (BWLD) raised Q2 guidance last night and the stock is up 11 percent today. As a result, KeyBanc Capital Markets/McDonald upgraded the stock this morning from “buy” to “aggressive buy.” This call is stupid for several reasons.

First, who still has 2 different forms of buy ratings these days? The buy/strong buy distinction was one used daily back in the bull market of the late 1990’s, but most firms have gone to a 3-tier rating system; buy, neutral, and sell. Having both “buy” and “aggressive buy” should cause an immediate loss of credibility in the eyes of investors.

Along the same lines, what is the difference between these two ratings? What constitutes buying a stock versus buying a stock aggressively? I’d love to hear an explanation. Finally, why does one only want to buy a stock at $30.07 (yesterday’s closing price) but when it opens at $33.89 today, they want to buy it more aggressively?

All in all, I doubt Wall Street research can get any worse than this.

10:53am – Oh, I forgot one more thing. Who names their investment bank KeyBanc Capital Markets/McDonald? Even Morgan Stanley Dean Witter Discover dropped the “Dean Witter Discover” after realizing how horrible it sounded.

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