Evercore ISI analyst David Palmer raised the firm’s price target on Darden (DRI) to $153 from $150 and keeps an In Line rating on the shares. He is raising his FY23 EPS estimate following fiscal Q2 earnings and his call back with the company, arguing that Olive Garden seems better positioned for sustainable traffic in spite of lower marketing and labor spending. However, within casual dining, Palmer said he continues to favor Texas Roadhouse (TXRH) shares over Darden given the former’s restaurant level margin recovery potential and stronger unit growth.
Published first on TheFly
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- Darden price target raised to $148 from $146 at Barclays
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- Darden revises FY23 EPS view to $7.60-$8.00 from $7.40-$8.00, consensus $7.71