Credit Suisse Upgrades Del Frisco's Restaurant (DFRG) to Outperform; To Benefit Most from Trump Individual Tax Cuts

November 29, 2016 7:43 AM EST
Get Alerts DFRG Hot Sheet
Price: $17.10 -0.87%

Rating Summary:
    7 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Credit Suisse upgraded Del Frisco's Restaurant (NASDAQ: DFRG) from Neutral to Outperform with a price target of $19.00 (from $15.00), saying it should benefit most from individual tax cuts, which are skewed to high-income consumers under Trump’s proposal.

Analyst Jason West commented, "We view DFRG as the most effective way (in restaurants) to gain exposure to several of Trump’s stated priorities, notably individual and corporate tax reform. Under Trump’s proposal, consumers in the top two income quintiles would see their after-tax incomes rise by ~2.2% and ~6.6%, respectively, vs. 0.8% to 1.8% for those in the bottom three quintiles. As the most upscale chain within our coverage, DFRG is best positioned to benefit from a high-income consumer with more disposable income. Revitalized business spending from a corporate tax cut could also drive an uplift in DFRG’s private dining business (~15% of sales excluding the Grille)."

For an analyst ratings summary and ratings history on Del Frisco's Restaurant click here. For more ratings news on Del Frisco's Restaurant click here.

Shares of Del Frisco's Restaurant closed at $16.35 yesterday.



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