Goldman Sachs Downgrades Darden Restaurants (DRI) to Neutral on Limited Visibility

December 13, 2012 7:45 AM EST
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Price: $73.44 +1.17%

Rating Summary:
    13 Buy, 22 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs downgraded Darden Restaurants (NYSE: DRI) from Buy to Neutral with a price target of $49.00 (from $65.00) on limited visibility towards a stabilization of results

The firm comments, "We continue to see DRI as a high-quality company with good brands, and we had previously been attracted by DRI’s risk-reward profile, especially in light of a potential Olive Garden turnaround. However, our confidence in a timely Olive Garden turnaround appears to have been misplaced and trends at DRI’s other brands have since deteriorated."

Goldman lowers fiscal 2013-2015 EPS estimates to $3.49/$3.64/$3.92 from $3.91/$4.45/$5.05 to reflect reduced same-store sales as well as associated margin de-leverage.

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 $45.80 yesterday.

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