UPDATE: JPMorgan Upgrades Brinker Int'l (EAT) to Overweight

(updated to add analyst comment)

JPMorgan analyst John Ivankoe upgraded Brinker Int'l (NYSE: EAT) from Neutral to Overweight with a price target of $43.00 (from $44.00).

The analyst comments "We believe that F20 estimates will remain largely intact and that it is appropriate to upgrade shares of Brinker as we believe the current 10.0% C20 FCF yield will get bid down. We believe a greater FCF focus is likely to emerge at the August 15 analyst day that would likely materialize in lower F20 capex and beyond. We continue to model F20 Chili’s comps up 2.0% and note that our previous F20 EPS estimate of $4.00 remains unchanged (vs. consensus $4.03) despite press release comments stating that the 116-unit acquisition is expected to “be EPS accretive and generate incremental free cash flow in F20.”"

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 $38.70 yesterday.

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