RBC Capital Reiterates Sector Perform on Darden Restaurants (DRI) After Raising Estimates

September 30, 2016 7:03 AM EDT
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Price: $78.60 -0.43%

Rating Summary:
    13 Buy, 22 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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RBC Capital reiterated a Sector Perform rating and $70.00 price target on Darden Restaurants (NYSE: DRI) ahead of the company's 1Q earnings report. RBC raised F1Q17 EPS estimates from $0.78 to $0.83, compared to consensus of $0.82, largely based on slightly higher Olive Garden SSS growth of 1.5% (1% prior).

Analyst David Palmer commented, "In spite of sluggish industry sales trends and diminishing food cost tailwinds (e.g. dairy) later in the year, we see modest upside to consensus FY17e EPS based on likely share gains by Olive Garden (partly driven by promo activity) and 2) share repurchases (e.g. 6%+ FCF yield)."

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

Shares of Darden Restaurants closed at $60.63 yesterday.



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