Shares in Collins Foods, operator of KFC Australia, Europe & Taco Bell Australia slide 6.6% to $10.30 (3-month lows), its trading volume surges

CFK is the worst performer in the ASX200 on Friday, when the Australia S&P/ASX200 is up 0.1%, and the MSCI AC Asia Pacific Index is down 0.1%.

So, is Collins Foods a BUY at these levels?

In Collins Foods half year results they their raised dividend after a more than fourfold increase in half profit. Revenue rose 14% to A$695.2 million, with all business units reporting sales growth on a same-store basis. And that has continued for this current reporting period (the first six weeks of its second half). So if you believe this trend will continue, then you would think CKF shares would be higher 6 months, right?

What could go wrong? Well CKF guided for continued pressure on consumers this year, with some consumers preferring to eat at home while grappling with cost of living pressures. But I don't think the consumer's pain will change over the next 6 months as interest rates are not expected to rise, in fact, they are expected to potentially fall in Australia.

Also consider, based on market thinking, known as consensus, the average analyst rating sees CKF's price getting to $12.68.

There are 6 buys, 5 holds and 1 sell (Citi). Morningstar is the most bullish, with a price target of $14.40, while Morgan Stanely has a $14.20 target for the KFC operator.