UPDATE: Wunderlich Securities Initiates Coverage on Brinker International with Hold Rating, $44 PT on Great Track Record, Tough Competition

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington initiated coverage on Brinker International EAT with a Hold rating and $44.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Brinker International, Inc. (EAT) with a Hold rating and a $44 target. Since management announced its strategic plan to revitalize its business in early 2010, the company appears on pace to double EPS to $2.75-2.80 one year ahead of its plan. That success has contributed to EAT shares increasing 145% over that time, outpacing the S&P. And, based on confidence in its evolving plan, management announced its updated plan to again double EPS over the next five years vs FY2012 EPS. Despite its aggressive plan, we believe EAT faces increased headwinds including weak macroeconomic trends, consumer spending, and increased industry competition. Given that uncertainty juxtaposed to EAT's improved valuation, we prefer to be more cautious with our initial rating.” Brinker International closed on Thursday at $39.23.