UPDATE: Sterne Agee Upgrades Brinker International to Buy on Top-Line Visibility
Sterne Agee raised its rating on Brinker International (NYSE: EAT) from Neutral to Buy with a $36 price target.
Sterne Agee said, "We are upgrading shares of EAT from Neutral to Buy given increased visibility into upcoming sales drivers for CY13. Channel checks at Chili's indicate strong performance from new menu items in test. These items are likely to be rolled out to the system in 1H13, providing a potential catalyst for accelerating SSS. We also believe that many of the new menu items are margin accretive. We are establishing a price target of $36, which assumes a P/E multiple of ~13.5x our FY14 estimate of $2.62."
Brinker International closed at $31.59 on Thursday.
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