Market Overview

UPDATE: Bank of America Upgrades Darden Restaurants to Neutral; Dividend Raise Offsets Weak Guidance

Related DRI
Darden Issues Statement Related to ISS Report: Says Many Holders Would See Risks If Starboard Gained Total Board Control
UPDATE: Darden Issues Release Urging Holders to Vote for Its Board Nominees
Will Diners Fall for Olive Garden's All-You-Can-Eat Pasta Pass? (Fox Business)

Bank of America upgraded Darden Restaurants (NYSE: DRI) from Underperform to Neutral and raised the price objective from $45.00 to $50.00.

Bank of America noted, "Darden has effectively guided down three times since last Friday – first for FY 2013, at its analyst meeting for FY 2014 and for its sustainable near term growth rate. The risk of lower earnings was why we rated the shares Underperform. Realization of this risk seems to be outweighed by a commitment to not only maintain the current dividend but to continue to raise it annually. The stock has traded up despite significantly reduced earnings expectations. We are raising our price objective from $45 to $50 with the latter based on the shares trading at a 4% yield that should increase when the dividend is presumably modestly raised after fiscal (May) YE."

Darden Restaurants closed at $45.79 on Tuesday.

Latest Ratings for DRI

DateFirmActionFromTo
Sep 2014CitigroupMaintainsBuy
Jul 2014Deutsche BankMaintainsHold
Jun 2014CitigroupMaintainsBuy

View More Analyst Ratings for DRI
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Upgrades Analyst Ratings

 

Related Articles (DRI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters