Darden Restaurants (DRI) PT Raised to $165 at BMO Capital

BMO Capital analyst Andrew Strelzik raised the price target on Darden Restaurants (NYSE: DRI) to $165.00 (from $160.00) while maintaining a Market Perform rating.

The analyst commented, "We increase our target to $165 as we slightly raise FY3Q24 EPS for more favorable near-term food costs (i.e., beef). That said, we lower FY3Q comp below consensus and highlight moderating traffic share gains. Potential FY3Q comp shortfall creates some near-term risk to shares, though risk/reward more broadly appears balanced. Shares have lagged casual dining coverage since the space bottomed ~5 months ago and YTD, but valuation has expanded to 11.5-12.0x our FY25 EBITDA compared with five-year average of 12x and three-year pre-COVID average of 11x."

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