What Analysts Are Recommending for Dunkin’ Brands
As of May 9, 2017, Dunkin’ Brands (DNKN) was trading at $55.13. The stock price may have factored in various estimates that we’ve already looked at in the previous parts of this series. In this final part of the series, we’ll look at analysts’ recommendations and price targets for Dunkin’ Brands.
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Although DNKN stock fell after the company’s 1Q17 results, analysts have raised their price targets. Initiatives taken by Dunkin’ Brands’ management to improve sales may have compelled analysts to raise their price targets. As of May 9, 2017, analysts are expecting DNKN stock to rise to $55.70 in the next 12 months, which represents a return potential of 1.0%. Earlier, on April 9, 2017, analysts were forecasting a price target of $54.20.
Below are the return potentials for Dunkin’ Brands’ peers in the next 12 months:
- Starbucks (SBUX): target price of $64.90 with a return potential of 6.4%
- Panera Bread (PNRA): target price of $307.70, which implies a fall of 1.7% from its current stock price
Of the 27 analysts following Dunkin’ Brands stock, 22.2% are recommending a “buy,” 63.0% are recommending a “hold,” and 14.8% are recommending a “sell.” On May 1, 2017, the Royal Bank of Canada upgraded Dunkin’ Brands stock to “outperform” from its earlier rating of “sector perform.” It also raised its price target from $54 to $64.
When a company’s stock is lower than its target price, that doesn’t mean the stock is an automatic “buy.” Before investing, make sure to carefully analyze the various metrics we’ve covered in this series.