Dividend Should Provide Darden Restaurants (DRI) Some Support - Goldman Sachs
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Price: $53.22 +1.14%
Rating Summary:
6 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
6 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade DRI Now!
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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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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