Brinker International (EAT): Cutting PT To $37 - RBC

RBC Capital analyst, David Palmer, reiterated his Sector Perform rating on shares of Brinker Int'l (NYSE: EAT) and cut his price target to $37 from $40 based on challenging industry conditions, promotional timing, and weather impact.

The analyst stated "For F1Q18, we assume EPS of $0.40 (-17% YOY; cons. $0.44) and Chili's SSS declined 3.5% (vs. -1.5% prior; cons. -2%), implying a -140bp gap (vs. -150 in F4Q17) to the industry". He went on to discuss a conservative outlook as well stating "lower advertising weights, competitive discounting ($1 margaritas at Applebee’s) and relatively high exposure to Hurricane affected areas (est. 10-15% of the system), might mean further downside to our estimate".

For an analyst ratings summary and ratings history on Brinker Int'l click here. For more ratings news on Brinker Int'l click here.

Shares of Brinker Int'l closed at $32.85 yesterday.

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