Darden Restaurants (DRI) PT Raised to $190 at Stifel

Stifel analyst Chris O\'Cull raised the price target on Darden Restaurants (NYSE: DRI) to $190.00 (from $185.00) while maintaining a Buy rating.

The analyst comments "We expect Darden to report F3Q24 (Feb) EPS results slightly ahead of the Street mean ($2.63), with consolidated SRS up roughly 1.2% (Street 1.4%). The company had incorporated less favorable weather comparisons in its guidance for F3Q, and based on our review of mobile location data, we expect Olive Garden comps will be in the 1.0-1.5% range (Street 1.7%) and LongHorn around 3.5% (Street 3.1%). We believe investors will be focused on assessing the strength of sales in the latter weeks of the quarter and the degree to which traffic trends have outperformed the industry; the company has exceeded its industry benchmark for comparable guest counts by several hundred basis points YTD. We believe Darden remains well-positioned to deliver full-year earnings closer to the high end of its guided range ($8.75-$8.90). Therefore, we left our FY24 EPS estimate of $8.88 unchanged (Street $8.87)."

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