UPDATE: Goldman Sachs Downgrades Dunkin' Brands (DNKN) to Neutral

Goldman Sachs downgraded Dunkin' Brands (NASDAQ: DNKN) from Buy to Neutral with a price target of $55 (unchanged). The downgrade is tied to valuation.

Analyst Karen Holthouse explained, "We downgrade DNKN to Neutral from Buy, given 1% downside to our price target vs. an average of 6% upside for the group and 19% for other Buy-rated stocks. We continue to see benefit from DD Perks and DNKN’s expanded K-cup distribution agreement (though the latter now appears to be more accurately reflected in 2016 consensus estimates). However, with the stock trading towards peak levels on EV/EBITDA and off of recent lows versus the S&P 500 and other highly franchised global peers, we believe the risk reward profile is more balanced. Our estimates and 12-month price target of $55 remain unchanged."

For an analyst ratings summary and ratings history on Dunkin' Brands click here. For more ratings news on Dunkin' Brands click here.

Shares of Dunkin' Brands closed at $55.38 yesterday.

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