Analysts See No Upside For Darden Restaurants; Are There Better Options In The Industry?

Loading...
Loading...

Darden Restaurants, Inc. DRI saw three major research firms issue ratings for its stock this week, both before and after reporting its second quarter results.

Bank of America reiterated its Underperform rating, setting a price target of $47.00. Barclays also maintained its Overweight recommendation, accompanied by a $57.00 price target, while Telsey upgraded the stock from an Underperform to a Market Perform with a price target of $54.00.

Related topic: Darden Restaurants Puts Priority On Real Estate

Given that Darden’s stock already trades above $57.00 per share, no upside potential is implied. Are there more intriguing options in this space?

A Look At Peers

There are many investment options in the restaurant industry, and their characteristics differ widely. For instance, research firm Wunderlich seems to like BJ's Restaurants, Inc. BJRI. It issued a Buy rating, along with a $56.00 price target, a few days ago.

Analysts also see considerable upside potential in Chipotle Mexican Grill, Inc. CMG. Goldman Sachs initiated coverage on the stock on December 8 with a Buy rating and a $790.00 price target (the stock currently trades around $649.00), while Citigroup reiterated its Buy recommendation last month with a price target of $765.00.

Another favorite: Starbucks Corporation SBUX. Last week, Jefferies and Goldman Sachs issued Buy ratings for the company, with $97.00 and $95.00 price targets, respectively. In the previous week, JP Morgan reiterated its Overweight recommendation accompanied by an $89.00 price target.

Loading...
Loading...
Posted In: Long IdeasRestaurantsTrading IdeasGeneralBank of AmericaBarclaysCitigroupGoldman SachsJefferiesJP MorganTelseyWunderlich
We simplify 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!

Loading...