UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Darden Restaurants

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Darden Restaurants DRI, but lowered its price target from $55.00 to $45.00. Deutsche Bank noted, “Staying on the sidelines. Ahead of the Dec 20 earnings release, DRI preannounced an ~40% EPS miss vs. consensus for the Nov. qtr. (3rd neg. pre-announce. in last 6 qtrs.). This miss was driven by weak traffic and margins as DRI continues to struggle to find the right balance of promo vs. innovation to drive consistent SSS. While DRI's div. yield is attractive, the weak cash flow coverage, lack of earnings visibility, and likely deceleration in unit growth do not support a near-term recovery in the stock price. Hold.” Darden Restaurants closed on Tuesday at $47.40.