UPDATE: Morgan Stanley Downgrades Brinker International on Continued Deceleration

In a report published Wednesday, Morgan Stanley analyst John Glass downgraded the rating on Brinker International EAT from Overweight to Equal-Weight, and removed the $44.00 price target.

In the report, Morgan Stanley noted, “Following a strong showing YTD, we are reducing our rating to EW due to continued deceleration in casual dining SSS. In a short period of time, consensus estimates have caught up with ours, leaving less room for upside, in our view, and if EAT's gap to industry sales continues to narrow, EAT loses one of the legs of its bull thesis. The other – strong free cash generation and a return of capital to shareholders—is still intact.”

Brinker International closed on Tuesday at $38.42.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsJohn GlassMorgan Stanley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!