Piper Jaffray Raises Price Target on Darden Restaurants (DRI) Following 4Q15 Results

Piper Jaffray reiterates a Neutral rating on Darden Restaurants (NYSE: DRI), and raised the price target to $66.00 (from $60.00), following its 4Q15 results. Operating EPS of $1.08 per share came in ahead of consensus expectations of $0.93.

Analyst Nicole Regan commented, "Darden recently reported 4Q15 results that were generally better-than-expected vs. our and consensus estimates. Comps and adj. operating EPS of $1.08 per share came in ahead of consensus expectations of $0.93 on improving operating trends. We have updated our model to reflect 4Q15 results, initial FY16 guidance, and while not reflected in our model currently, would make note of the company's expectations to ultimately pay down ~$1.0B in debt through a combination of cash on the balance sheet and funds upon completion of previously discussed efforts around sale leasebacks and a REIT spin-off. While not completed the company expects the REIT spin off to close in the second half of calendar 2015. We maintain our Neutral rating and are raising our price target to $66 (from $60 prior) based on ~11x (unchanged) our now higher FY16E EBITDA."

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 $69.39 yesterday.

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