Brinker price target raised to $41 from $40 at RBC Capital

RBC Capital raised the firm’s price target on Brinker to $41 from $40 but keeps a Sector Perform rating on the shares as part of a broader research note on Casual Dining. Industry estimated same-restaurant sales accelerated to above 5% in June, driving casual dining group valuations higher, the analyst tells investors in a research note. The firm adds however that while Brinker shares continue to trade at a discount to the casual-dining peer group average, the valuation is “fair at the moment” as the company’s same-store sales improvement is balanced by a relatively muted unit growth outlook and relatively lower margin.