UPDATE: Wunderlich Securities Downgrades Brinker International to Hold, Lowers PT on Lowered Estimates

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.