Goldman Sachs reported on Thursday that they have downgraded
restaurant company, Darden Restaurants, Inc.(
) to "Neutral."
Analysts from the firm have downgraded DRI from a "Buy" to
"Neutral," and have reduced its price target from $65 to $49. This
price target suggests a 6% increase from the stock's current price
The firm noted, "we continue to see DRI as a high-quality
company with good brands, and we had previously been attracted by
DRI's risk-reward profile, especially in light of a potential Olive
Garden turnaround. However, our confidence in a timely Olive Garden
turnaround appears to have been misplaced and trends at DRI's other
brands have since deteriorated."
Looking ahead, the firm has lowered its estimates for 2013 to
2015. Estimates for 2013 were reduced from $3.91 per share to $3.49
per share. For 2014, estimates declined from $4.45 to $3.64 per
share, and for 2015, estimates were lowered from $5.05 per share to
$3.92 per share.
Darden shares were mostly flat during premarket trading
Thursday. The stock is mostly flat YTD.
The Bottom Line
Shares of Darden Restaurants (
) have a 4.37% dividend yield, based on last night's closing stock
price of $45.80. The stock has technical support in the $43-$44
price area. If the shares can firm up, we see overhead resistance
around the $49-$50 price levels.
Darden Restaurants, Inc.(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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