Maxim Group Thinks Brinker International’s Stock is Going to Recover


In a report released yesterday, Stephen Anderson from Maxim Group maintained a Buy rating on Brinker International (EAT), with a price target of $58. The company’s shares closed yesterday at $38.38, close to its 52-week low of $36.82.

Anderson wrote:

“We maintain our Buy rating and $58 price target on Brinker International (EAT) following yesterday’s announcement that Chili’s (87% of TTM sales) signed a letter of intent to purchase 116 restaurants from franchisee ERJ Dining. We lower our F1Q20 (September) EPS estimate to $0.46, from $0.51, as we model integration costs and increased interest expense. However, we expect the ERJ acquisition to be accretive to earnings, and thus raise our FY20 (June) EPS estimate to $4.25, from $4.23 (vs. $4.08 Street), and our FY21 EPS estimate to $4.77, from $4.72 (vs. $4.24 Street).”

According to TipRanks.com, Anderson is a 5-star analyst with an average return of 8.7% and a 64.0% success rate. Anderson covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Good Times Restaurants Inc, and Famous Dave’s Of America.

Currently, the analyst consensus on Brinker International is a Moderate Buy with an average price target of $48.20.

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The company has a one-year high of $53.61 and a one-year low of $36.82. Currently, Brinker International has an average volume of 949.6K.

Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EAT in relation to earlier this year.

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Brinker International, Inc. engages in owning, developing, and franchising Chili’s Grill and Bar and Maggiano’s Little Italy restaurant brands. It operates through the following segments: Chili’s, and Maggiano’s.

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