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

December 4, 2012 11:53 AM EST Send to a Friend
Get Alerts DRI Hot Sheet
Price: $50.30 --0%

Rating Summary:
    7 Buy, 21 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 23 | New: 13
Trade DRI Now!
Join SI Premium – FREE
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.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Dividends

Related Entities

Dividend

Add Your Comment