Darden Restaurants (DRI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian Harbour from Morgan Stanley maintained a Buy rating on the stock and has a $209.00 price target.
Brian Harbour has given his Buy rating due to a combination of factors that suggest Darden Restaurants is well-positioned despite current market uncertainties. Although there is an anticipated miss in top-line revenue, the company’s earnings per share remain within the guided range for the fiscal year, indicating stability. Harbour notes that while consumer sentiment is mixed, Darden Restaurants appears to be performing better than its peers, which is a positive indicator for potential investors.
Furthermore, Harbour acknowledges the broader economic concerns, such as the possibility of a consumer pullback and a downgraded growth forecast. However, he points out that Darden’s reach and status as a bellwether in the full-service restaurant sector provide valuable insights into consumer behavior. Despite some signs of consumer pullback, Darden’s performance, coupled with its ability to manage costs effectively, supports the Buy rating. The company’s resilience in navigating economic challenges and maintaining stable earnings forecasts contributes to the positive outlook.
According to TipRanks, Harbour is an analyst with an average return of -1.8% and a 47.90% success rate. Harbour covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, Wendy’s, and Chipotle.
In another report released on March 14, Evercore ISI also maintained a Buy rating on the stock with a $220.00 price target.
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