UPDATE: RBC Capital Markets Initiates Coverage on Brinker International with Outperform Rating, $50 PT on Positive Growth Drivers

In a report published Friday, RBC Capital Markets analyst David Palmer initiated coverage on

with an Outperform rating and $50.00 price target. In the report, RBC Capital Markets noted, “We believe more relevant menu innovation and increased media weight will return Chili's to share gains versus the industry in the coming quarters. With most productivity initiatives in the past, we believe stock upside will be more dependent on sales performance. That said, modest SSS growth and share repurchases from improved FCF and lower capex should drive double-digit EPS growth over the next two years.” Brinker International closed on Thursday at $44.78.