Darden Restaurants (NYSE: DRI) had its price target lowered by JPMorgan Chase from $50.00 to $45.00 in a research report released on Wednesday morning. JPMorgan Chase currently has a neutral rating on the stock.
“Darden is growing an industry high 100 new full service units in F13 (ex-Yard House), for 5% unit growth and up from 89 net new units in F12 (ex-Eddie V’s). Additionally, the F14 FCF yield of ~1.5%, less than its current 4%+ dividend matched with current net debt/F14 EBITDA of a relatively high 1.7x suggests recent dividend increases must take a pause. All of this adds risk, but the real question is how the new value focused menus being launched at Red Lobster in October 2012 and Olive Garden by February 2013 will be received as additional traffic may be offset by check dilution.,” JPMorgan Chase’s analyst commented.
Shares of Darden Restaurants opened at 46.27 on Wednesday. Darden Restaurants has a 52 week low of $44.11 and a 52 week high of $57.93. The stock’s 50-day moving average is currently $45.95. The company has a market cap of $5.985 billion and a P/E ratio of 13.22.
Other equities research analysts have also recently issued reports about the stock. Analysts at Goldman Sachs reiterated a neutral rating on shares of Darden Restaurants in a research note to investors on Wednesday. They now have a $45.00 price target on the stock. Separately, analysts at Bank of America upgraded shares of Darden Restaurants from an underperform rating to a neutral rating in a research note to investors on Wednesday. They now have a $50.00 price target on the stock, up previously from $45.00. Finally, analysts at Susquehanna cut their price target on shares of Darden Restaurants from $42.00 to $40.00 in a research note to investors on Tuesday. They now have a neutral rating on the stock.
Eleven investment analysts have rated the stock with a buy rating, one has issued an overweight rating, nineteen have assigned a hold rating, one has given an underweight rating, and one has given a sell rating to the company’s stock. The company presently has a consensus rating of overweight and an average price target of $49.32.
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