Market Overview

Raymond James Upgrades Bloomin' Brands Ahead Of Q2 Print

Raymond James Upgrades Bloomin' Brands Ahead Of Q2 Print
Related BLMN
Earnings Scheduled For October 29, 2018
Casual Dining Stocks Struggle To Cook Up More Foot Traffic

Bloomin' Brands (NASDAQ: BLMN) picked up a sell-side bull Tuesday ahead of its July 30 second-quarter earnings report.

The Analyst

Raymond James analyst Brian Vaccaro upgraded Bloomin' Brands from Market Perform to Outperform and set a 12-month price target of $25.

The Thesis

Raymond James forecast that Bloomin' Brands will report a Q2 EPS of 29 cents, a penny below the consensus.  

Vaccaro expects flat revenue of $1.036 billion as soft sales in Brazil offset a U.S. comp gain of 2.4 percent. (See the analyst's track record here.) 

An upgrade of Outback Steakhouse's parent company is justified, as low expectations are priced in after a 20-percent plunge in share price since May, the analyst said.

Investors were negative on Bloomin' Brands largely due to slow sales in Brazil, Vaccaro said. Strong U.S. Outback Steakhouse comps will create an attractive entry point, he said.

The stock decline created an attractive risk-reward, as the company is trading at a discount valuation to its peers, in Raymond James' view. 

The firm's $25 price target implies a 16.9 price-to-earnings multiple and 8 times the stock's EV/EBITDA. This multiple represents a slight discount to Bloomin' Brands' mature casual dining group peers, Vaccaro said. 

The Price Action

Bloomin' Brands shares were up 0.34 percent at $20.78 at the close Tuesday. 

Related Links:

Benzinga's Top Upgrades, Downgrades For July 17, 2018

Jana Partners Q4 Letter Details New Stakes, Success Of Activist Positions

Public domain photo via Wikimedia. 

Latest Ratings for BLMN

Oct 2018Gordon HaskettInitiates Coverage OnBuy
Sep 2018BMO CapitalDowngradesOutperformMarket Perform
Sep 2018Goldman SachsUpgradesSellNeutral

View More Analyst Ratings for BLMN
View the Latest Analyst Ratings

Posted-In: Brian Vaccaro Raymond JamesAnalyst Color Upgrades Price Target Restaurants Analyst Ratings General Best of Benzinga


Related Articles (BLMN)

View Comments and Join the Discussion!

Latest Ratings

CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Earnings Preview For Northern Trust

M&T Bank Earnings Preview