KeyBanc Upgrades Brinker Int'l (EAT) to Overweight

KeyBanc analyst Eric Gonzalez upgraded Brinker Int'l (NYSE: EAT) from Sector Weight to Overweight with a price target of $72.00.

The analyst comments: "We are upgrading EAT stock to OW and establishing a $72 PT. Our call follows an ~11% post-results decline in EAT shares (vs. S&P500 up 0.3%), which we believe presents a compelling entry point even as estimates are reset lower. We believe Brinker's F4Q24 results are misunderstood and that it deserves credit for the level of SSS and traffic outperformance it achieved. And while the decision to reinvest some of its SSS growth upside will weigh on FY25 earnings (and is now accounted for in our lower EPS estimates), we believe Brinker is making the right choices for the LT viability of the business, which we believe will ultimately drive earnings upside. At ~13.5x FY25E EPS, we see room for multiple expansion as the market digests these results and eventually comes to appreciate Brinker's more sustainable and consistent earnings growth profile."

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 $62.86 yesterday.

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