Doughnut and coffee chain operator Dunkin Brands Group Inc. (
) on Tuesday received some tepid commentary from analysts at
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
Dunkin Brands shares were unchanged in premarket trading
The Bottom Line
Shares of Dunkin Brands (
) 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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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