Oppenheimer analyst Brian Bittner reiterated a Buy rating on Darden (DRI) today and set a price target of $130. The company’s shares closed yesterday at $101.75.
Bittner noted:
“DRI’s setup into results has again demanded our attention and we recommend buying the pullback ahead of the print. Our updated analysis combined with takeaways from earlier mgmt meetings supports our thesis for strong results against subdued expectations. We see unique catalysts for SSS and margin upside and raise our ’19 EPS estimates above the Street. With the stock now trading at ~16x next fiscal year’s P/E, we like the current entry point’s risk/reward. The negative sentiment toward casual dining remains a headwind to stock re-rating higher, but DRI is positioned with tools to outperform.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 10.8% and a 66.2% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
Currently, the analyst consensus on Darden is a Moderate Buy with an average price target of $119.21, which is a 17.2% upside from current levels. In a report issued on November 29, Barclays also maintained a Buy rating on the stock with a $129 price target.
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Based on Darden’s latest earnings release for the quarter ending August 31, the company reported a quarterly net profit of $166 million. In comparison, last year the company had a net profit of $84.7 million.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. Most recently, in October 2018, David C. George, the EVP & COO of DRI sold 55,671 shares for a total of $6,025,272.
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Darden Restaurants, Inc. engages in the provision of restaurant services. It operates through the following segments: Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business. The Olive Garden segment is the largest full-service dining Italian restaurant operator.
