UPDATE: Wunderlich Securities Upgrades Brinker International to Buy, Raises PT on Attractive Valuation, Confidence in Management's Plan

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington upgraded the rating on Brinker International EAT from Hold to Buy, and raised the price target from $44.00 to $50.00. In the report, Wunderlich Securities noted, “We are raising our rating on Brinker Intl., Inc. (EAT) to Buy from Hold and our price target to $50 from $44, equal to ~8.0x our cal. 2015 EV/EBITDA. Our upgrade reflects our confidence in management's more promotional sales-driving plan, shareholder-friendly initiatives, and attractive valuation. While Brinker remains vulnerable to competitive encroachment and recently lowered its FY2014 SSS and EPS, we believe management's strategic technology investments have the company better positioned than most industry peers to withstand margin pressures from sustained industry competition. And with its increased ad weights supporting a robust pipeline of new food news and convenient consumer services, we believe Chili's appears poised to continue to take share versus its weaker industry peers.” Brinker International closed on Thursday at $42.12.