Oppenheimer analyst Brian Bittner reiterated a Buy rating on Darden (DRI) yesterday and set a price target of $130. The company’s shares closed yesterday at $103.85.
Bittner said:
“After a 15% pull-back since its last earnings announcement, DRI reported an impressive 2Q19 and increased ’19 guidance again. While investors fear an industry slowdown into next year, DRI confidently reiterated the consumer remains healthy and sales trends remain steady, particularly at OG where execution remains unique. Overall, we still see increased guidance as moderately conservative particularly as investments begin to be lapped, promotions are fenced and Cheddar’s potentially improves. At ~16.5x forward P/E we remain attracted to the setup and reiterate our $130 price target.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 10.3% and a 65.3% 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 $120.29, which is a 15.8% upside from current levels. In a report issued on December 12, RBC Capital also maintained a Buy rating on the stock with a $130 price target.
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Darden’s market cap is currently $12.89B and has a P/E ratio of 20.29. The company has a Price to Book ratio of 5.66.
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.
