UPDATE: Evercore ISI Upgrades Texas Roadhouse (TXRH) to Outperform, Labelled a Top Pick

(Updated - January 14, 2022 5:58 AM EST)

Evercore ISI analyst David Palmer upgraded Texas Roadhouse (NASDAQ: TXRH) from In Line to Outperform with a price target of $110.00 (from $100.00).

The analyst comments "We are upgrading shares of Texas Roadhouse to Outperform, a year after we downgraded shares to In Line on valuation and commodity price concerns. Shares rose 12% in 2021, and we believe there is still significant upside potential to traffic as COVID hopefully dissipates this spring. In addition, we believe that Texas Roadhouse will see some benefit from beef costs that have come off the top 20% in some instances since the last conference call (50% of its cost basket). However, we do believe that the commodity benefit will not be as straightforward as its seems as Texas will be lapping some prices throughout 2021 that were locked in at lower rates than spot. Also, we suspect that Texas Roadhouse could easily exceed its longer-term unit growth target of 800 and there could be as many as 250 Bubba’s 33s added over time. Texas Roadhouse has been compounding EPS at 15% since 2015, and we believe that it is at least a 10% EPS grower going forward."

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 $87.49 yesterday.

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