RBC Capital Raises Price Target on Texas Roadhouse (TXRH) Reflecting Stronger Margins

RBC Capital reiterated a Sector Perform rating on Texas Roadhouse (NASDAQ: TXRH), and raised the price target to $44.00 (from $42.00), following the company's 1Q earnings report. RBC raised 2016 and 2017 EPS estimates from $1.70 and $1.99 to $1.72 and $2.03, respectively. 1Q15 food inflation of 1% was limited by lower beef costs (~55% of COGS), and the company anticipates 1-2% deflation for the year.

Analyst David Palmer commented, "Following 1Q16 results, we are raising our price target and EPS estimates slightly to reflect stronger margins from beef deflation and continued industry-leading SSS momentum."

For an analyst ratings summary and ratings history on Texas Roadhouse click here. For more ratings news on Texas Roadhouse click here.

Shares of Texas Roadhouse closed at $42.06 yesterday.

You May Also Be Interested In

• BofA Securities Double Upgrades Sonic Auto (SAH) to Buy
• BofA Securities Downgrades Hertz Global (HTZ) to Underperform
• Hub Group (HUBG) PT Lowered to $42 at Stephens