Monro's (MNRO) fiscal Q3 results provided "some encouraging" signs as the company is "slowly" moving on the right side although the results missed forecasts, Wedbush said in a note Thursday.

December comparable store sales and comparable tire unit sales were the positives in the quarter, analysts Seth Basham and Matthew McCartney wrote.

The note said that January's cold weather could "boost" comparable sales by 100 to 200 basis points in the coming months.

"Despite the short-term pressure on comps, the harsh weather should benefit comps near-term, as freezing temperatures and precipitation should lead to more duress on parts and more potholes on roads, thereby driving demand for replacements/service," the note added.

Wedbush cut Monro's price target to $27 from $31 and maintained an outperform rating on the stock.

Monro's shares were down over 4% in recent Thursday trading.

Price: 19.36, Change: -0.95, Percent Change: -4.66