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UPDATE: Wunderlich Securities Downgrades Brinker International On Lowered Estimates

Related EAT
Earnings Scheduled For October 21, 2014
Benzinga's Top Downgrades

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington downgraded the rating on Brinker International (NYSE: EAT) from Buy to Hold, and lowered the price target from $56.00 to $52.00.

In the report, Wunderlich Securities noted, “Cautiously, we are moving our rating on Brinker Intl, Inc. (EAT) to Hold from Buy as we believe the tentacles of encroaching industry competition add increased risk and headwinds to our estimates and, potentially, to EAT's stock price performance.

"While we believe management has distinguished its business model as one of the more efficient within the industry, weak consumer spending and intensifying competition from struggling national competitors adds the risk of siphoning sales from Brinker's more healthy brands, and adding to creeping pressure from commodities and wage rates. We have lowered our blended-SSS for Q4F14 (Jun) to 1.3% from 1.9% and EPS to $0.87 from $0.89; trimmed our FY15 SSS to 1.3% from 1.5%, and EPS to $3.12 from $3.20; and reduced our price target to $52 from $56.”

Brinker International closed on Thursday at $47.65.

Latest Ratings for EAT

DateFirmActionFromTo
Oct 2014KeyBancDowngradesBuyHold
Oct 2014BMO CapitalInitiates Coverage onMarket Perform
Aug 2014WunderlichUpgradesHoldBuy

View More Analyst Ratings for EAT
View the Latest Analyst Ratings

Posted-In: Robert M. Derrington Wunderlich SecuritiesAnalyst Color Downgrades Analyst Ratings

 

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