Wunderlich Securities Sees Proxy Contest Heating Up For Darden Restaurants, Inc.

In a report published Tuesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Hold rating and $54.00 price target on

. In the report, Wunderlich Securities noted, “Darden (DRI) recently reported Q1F15 (Aug) EPS ex-items of $0.32, in-line with pre-released guidance of $0.31-$0.33. While its results reflect slow, steady improvement in its operating trends, the ‘war of the words' between the company and activist investors continues to head for a show-down at the company's Annual Meeting on October 10, 2014. Yesterday, the company released another Investor Presentation arguing why support of its initiatives and Board nominees best supports DRI value creation vs. the activists' agenda. While both arguments hold some merit, we remain cautious on Darden (DRI) given the likelihood of sustained operating volatility.” Darden Restaurants closed on Monday at $49.94.