Darden Restaurants (DRI) PT Raised to $90 at Oppenheimer; 'Best House In Full-Service Dining'

Oppenheimer analyst Brian Bittner raised the price target on Darden Restaurants (NYSE: DRI) to $90.00 (from $85.00) while maintaining a Outperform rating.

The analyst commented, "DRI's latest update suggests the Street's SSS estimates overcorrected and now need to move higher. Trends should continue on path of improvement as dining rooms re-open: e.g., OG units offering limited dine-in last week saw SSS down only 26% (vs 38% for the system). These dynamics are bolstering cash flow, which already appears to be break-even at restaurant-level based on our analysis. As we initiate our fiscal '22 estimates (begins in 12 months), we conservatively assume unit economics remain below '19 peak. But, we see upside potential to these estimates, particularly as independents close and cede share. Raise target to $90, from $85."

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