As of December 12, 2017, Darden Restaurants (DRI) was trading at $87.14. On the same day, analysts were expecting the stock price of the company to reach $89.45, which represents growth of 2.7% from its current stock price.
Before the announcement of fiscal 1Q18 earnings, analysts had a target price of $93.60 for the stock. The lower-than-expected SSSG (same-store sales growth) in fiscal 1Q18 appears to have compelled analysts to lower their target price.
On December 12, 2017, SunTrust Robinson had raised its target price from $85 to $94. Earlier, on October 19, BMO had lowered its target price from $85 to $80. On October 13, 2017, Longbow Research initiated coverage of the company with a “neutral” rating.
The target price and return potential of Darden’s peers are as follows:
- Bloomin’ Brands (BLMN) has a target price of $20.1, which represents a fall of 6.0% from its current stock price.
- Brinker International (EAT) has a target price of $37.19, which represents a fall of 3.1% from its current stock price.
- Texas Roadhouse (TXRH) has a target price of $53.06 with a return potential of 4.2%.
Of the 27 analysts that follow Darden, 33.3% are recommending a “buy,” 63.0% are recommending a “hold,” and the remaining 3.7% are favoring a “sell.”
Currently, Darden is trading below analysts’ target price. However, this does not mean an automatic “buy.” Investors should carefully analyze various parameters discussed in our earlier articles before making any investment decisions.