RBC Capital Reiterates Sector Perform on Darden Restaurants (DRI) Following 1Q Report

October 5, 2016 6:57 AM EDT
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Price: $62.61 +1.77%

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RBC Capital reiterated a Sector Perform rating and $70.00 price target on Darden Restaurants (NYSE: DRI) following the company's 1Q earnings report. DRI reported asset disposal gains and sooner than expected share repurchases, which totaled $196 million during the quarter. RBC adjusted FY17 EPS estimates to $3.95 from $3.92, just below the top end of the company's $3.87 to $3.97 guidance range.

Analyst David Palmer commented, "We are raising our FY17 EPS estimate following better than expected F1Q results. Our estimates assume that ongoing market share gains, benign food costs, and share repurchases can sustain earnings near the long-term target algorithm until the casual dining industry rebounds. Until then, we believe our current price target and upside to valuation appear reasonable."

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 $61.72 yesterday.

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