Raymond James Upgrades Brinker Int'l (EAT) to Outperform

Raymond James analyst Brian Vaccaro upgraded Brinker Int'l (NYSE: EAT) from Market Perform to Outperform with a price target of $195.00.

The analyst comments "We are upgrading EAT to Outperform from Market Perform and establishing a price target of $195 (~16x our raised FY27 EPS estimate, adjusting for extra week). We expect the company to report a strong “beat and raise” this quarter as we believe 1) Chili’s has successfully lapped much more difficult comparisons, 2) it can sustain solidly positive comps supported by continued menu/marketing innovation (e.g. chicken sandwich, upgrades to steaks/salads) and investments in its people (GM compensation structure) which should benefit the guest experience. We also see room for some multiple expansion supported by dramatic improvements in the company’s margin, B/S, and FCF profile (6-7% FCF yield supporting strong buyback) and plans to resume modest new unit growth in the coming years."

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 $159.73 yesterday.

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