Guzman y Gomez's (ASX:GYG) target of a consistent, elevated and accelerating store roll-out in Australia is "overly optimistic," Goldman Sachs analysts said, according to a report by The Australian on Wednesday.
Guzman y Gomez plans to increase the targeted store roll-out to 40 stores per annum and a long-term target of 1,000 stores in Australia.
While it is making early progress, the analysts said the size of the targets was overly optimistic given the limited precedent in the Australian market and inherent challenges in Australia's development landscape.
Goldman Sachs maintained Guzman y Gomez's sell rating while slashing its price target to AU$29 from AU$33.60.
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