UPDATE: Sterne Agee Cuts PT to $55 on Darden Restaurants Following Q2 Miss
Sterne Agee reiterated its Buy rating on Darden Restaurants (NYSE: DRI) but reduced its price target from $63 to $55.
Sterne Agee commented, "We believe that the shortfall in 2Q earnings is the function of a soft macro environment coupled with company-specific missteps on the promotional front. While disappointing, we have lowered our EPS estimates to the low end of management's guidance and believe that the bad news is largely reflected in the stock at this level. Also, we believe that a dividend yield of ~4.3% will provide support for the stock."
Darden Restaurants closed at $47.40 on Tuesday.
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