Dividend Should Provide Darden Restaurants (DRI) Some Support - Goldman Sachs

December 4, 2012 11:53 AM EST
Get Alerts DRI Hot Sheet
Price: $73.44 +1.17%

Rating Summary:
    13 Buy, 22 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Analysts at Goldman Sachs weighed in on today's blow-up du jour Darden Restaurants (NYSE: DRI) after the company negatively pre-announced 2Q13 results and lowered FY13 guidance.

The firm views the warning as a negative catalyst for shares. That said they see dividend support and not expect a company of this quality to trade above a 4% dividend yield. "Dividend yields of 4%/4.5%/ and 5% would imply price levels of $50/$44/$39 respectively," the analyst notes.

Shares of Darden Restaurants have already crossed below Goldman's first level. Currently at $47.28, the $2/share annual dividend yields 4.2%.

The firm maintained a Buy rating and $65 price target on DRI.

For an analyst ratings summary and ratings history on Darden Restaurants click here. For more ratings news on Darden Restaurants click here.

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