Bank of America Raises Darden Restaurants (NYSE:DRI) Price Target to $115.00

Darden Restaurants (NYSE:DRI) had its price target increased by Bank of America from $100.00 to $115.00 in a research report sent to investors on Friday, Benzinga reports. Bank of America currently has a buy rating on the restaurant operator’s stock.

Other equities research analysts also recently issued reports about the stock. UBS Group lifted their price objective on shares of Darden Restaurants from $90.00 to $100.00 and gave the stock a buy rating in a research note on Wednesday, September 9th. Oppenheimer raised their target price on shares of Darden Restaurants from $90.00 to $100.00 and gave the stock an outperform rating in a report on Tuesday, September 22nd. They noted that the move was a valuation call. Piper Sandler reissued an overweight rating and set a $103.00 target price (up previously from $95.00) on shares of Darden Restaurants in a report on Friday. MKM Partners raised their target price on shares of Darden Restaurants from $110.00 to $115.00 and gave the stock a buy rating in a report on Friday. Finally, Credit Suisse Group raised their target price on shares of Darden Restaurants from $95.00 to $112.00 and gave the stock an outperform rating in a report on Friday. Fifteen analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the stock. Darden Restaurants presently has a consensus rating of Buy and an average price target of $99.48.

Shares of DRI opened at $97.17 on Friday. The company has a market cap of $12.62 billion, a price-to-earnings ratio of -242.93, a price-to-earnings-growth ratio of 2.13 and a beta of 1.34. Darden Restaurants has a twelve month low of $26.15 and a twelve month high of $124.01. The company has a quick ratio of 0.50, a current ratio of 0.61 and a debt-to-equity ratio of 0.40. The company has a 50 day moving average of $86.51 and a two-hundred day moving average of $74.21.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, September 24th. The restaurant operator reported $0.56 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.05 by $0.51. Darden Restaurants had a negative net margin of 0.67% and a positive return on equity of 16.68%. The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period last year, the firm earned $1.38 earnings per share. Darden Restaurants’s revenue was down 28.6% compared to the same quarter last year. On average, sell-side analysts expect that Darden Restaurants will post 2.93 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, October 8th. This represents a $1.20 dividend on an annualized basis and a yield of 1.23%.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Two Sigma Advisers LP boosted its position in Darden Restaurants by 744.5% during the second quarter. Two Sigma Advisers LP now owns 309,095 shares of the restaurant operator’s stock worth $23,420,000 after acquiring an additional 272,496 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in Darden Restaurants by 3.4% in the 2nd quarter. Principal Financial Group Inc. now owns 202,735 shares of the restaurant operator’s stock valued at $15,361,000 after purchasing an additional 6,611 shares during the last quarter. Neuberger Berman Group LLC boosted its holdings in Darden Restaurants by 593.1% in the 2nd quarter. Neuberger Berman Group LLC now owns 173,357 shares of the restaurant operator’s stock valued at $13,125,000 after purchasing an additional 148,345 shares during the last quarter. Quadrature Capital Ltd acquired a new position in Darden Restaurants in the 2nd quarter valued at about $3,978,000. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Darden Restaurants by 12.9% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 635,432 shares of the restaurant operator’s stock valued at $48,147,000 after purchasing an additional 72,690 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company’s stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc, through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 27, 2018, it owned and operated approximately 1,746 restaurants under the Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V's brands.

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Analyst Recommendations for Darden Restaurants (NYSE:DRI)

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