The Collins Foods Ltd (ASX: CKF) share price is edging higher on Wednesday despite market weakness.
In morning trade, the quick service restaurant operator's shares are up 0.5% to $10.01.
Why is the Collins Foods share price pushing higher?
Investors have been bidding the Collins Foods share price higher after a number of brokers responded positively to the company's full-year results.
Notes out of Macquarie, Morgans, and Wilsons reveal that their analysts have put the equivalent of buy ratings on the KFC restaurant operator's shares.
What are brokers saying?
The team at Macquarie has retained its outperform rating with an $11.50 price target.
The broker was pleased with Collins Foods' performance in FY 2022 and particularly its European operations. And while it acknowledges that costs will increase in the short term due to inflationary pressures, it remains positive.
It's a similar story over at Morgans, where the broker upgraded Collins Foods' shares to an add rating with an $11.50 price target.
Its analysts believe the Collins Foods share price is good value at the current level. Particularly given the company's defensive qualities. Morgans is expecting demand for KFC to be resilient in the current environment. The broker also sees opportunities for the company to pass on higher costs through price increases.
Wilsons tip tasty upside for Collins Foods' shares
The most bullish of the three brokers is Wilsons, which sees tasty upside for Collins Foods' shares over the next 12 months.
According to the note, the broker has a buy rating and $12.10 price target on the company's shares. Based on the current Collins Food share price, this implies potential upside of over 20% for investors.
Wilsons is also forecasting a fully franked dividend of 28 cents per share in FY 2023. This equates to a 2.8% yield, which stretches the total return to over 23%.
