KeyBanc Downgrades Brinker Int'l (EAT) to Hold

KeyBanc downgraded Brinker Int'l (NYSE: EAT) from Buy to Hold and removed its price target (prior $52.00).

Analyst Christopher O'Cull said, "Brinker International, Inc.’s (EAT-NYSE) shares have been strong this year (up 13% vs. S&P 500 up 1% and KBCM Restaurant Index flat), and has recently reached our $52 price target. We attribute the relatively strong price performance to investors' growing confidence that Chili’s sales are improving, capital expenditures will likely be reduced dramatically during the next 12 months, and the Company will likely be able to return to shareholders a greater portion of its cash flows in the form of share repurchases and dividends. For us to raise our price target, we need stronger conviction that traffic growth can be achieved and sustained and/or further capital expenditure reductions are likely. EAT is trading at 9.0x NTM EV/EBITDA (CDR segment median 9.0x), 17x NTM P/E (CDR median 19x), and 1.4x EV/Sales (CDR median 1.1x)."

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 $52.29 yesterday.

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