Dunkin Brands Started as a “Neutral” at Wedbush; Fully Valued at Current Levels (DNKN)

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Doughnut and coffee chain operator Dunkin Brands Group Inc. ( DNKN ) on Tuesday received some tepid commentary from analysts at Wedbush Securities.

The firm initiated coverage on DNKN with a "Neutral" rating and $31 price target, suggesting a $31.54.

Wedbush Securities noted, "We believe Dunkin's current valuation properly reflects its large domestic and international growth opportunities, as well as the advantages of its franchised model. We also see some risk from muted near-term SSS growth. … With brand awareness established by national advertising and successful grocery distribution ahead of unit growth, we expect newly implemented flat national supply chain pricing to drive improved West and Emerging market ROIs and acceleration in U.S. unit development."

Dunkin Brands shares were unchanged in premarket trading Tuesday.

The Bottom Line
Shares of Dunkin Brands ( DNKN ) have a 1.90% dividend yield, based on last night's closing stock price of $31.54. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34-$35 price levels.

Dunkin Brands Group Inc. ( DNKN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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