Texas Roadhouse (TXRH) PT Raised to $53 at RBC Capital, "On the right side of casual dining bifurcation"
RBC Capital raised its price target on Texas Roadhouse (NASDAQ: TXRH) to $53.00 (from $49.00) while maintaining a Sector Perform rating.
Analyst David Palmer expects more EPS upside over the coming year noting protein cost tailwind fading. He expects fiscal stimulus and rising consumer confidence to be the driver for improvement in casual dinning trends.
"We believe an upside scenario that includes a combination of 4%+ SSS growth, ~7% unit growth, and strong profit flow through from lower protein costs / more stable labor inflation might mean that 30%+ EPS growth is possible in the next
couple of years."
His FY 2017 EPS estimate rises from $1.90 to $1.96 and FY 2018 EPS estimate rises from $2.22 to $2.27