Following Tuesday's poor guidance for Darden Restaurants, Inc. (
DRI ), analysts at Jefferies downgraded the
company on Wednesday as well as lowered its valuation.
The analysts downgraded DRI from "Buy" to "Hold" with a new
price target of $47, down from $61. The new price target is a a -1%
difference from Tuesday's closing price of $47.40.
Jefferies commented, "With DRI preannouncing a disappointing F2Q
miss & once again lowering guidance into the qtr, we are
downgrading the stock from Buy to Hold. Valuation is reasonable
& we like the Yardhouse acq, but sales have stagnated despite
multiple efforts to reinvigorate traffic. We cut our F13/14 EPS to
$3.35/3.82, PT to $47 and rating to Hold as we await better
visibility on the top line."
Darden Restaurants shares were down 39 cents, or -0.82%, in
premarket trading on Wednesday.
The Bottom Line
Shares of Darden Restaurants ( DRI ) have a 4.22%
dividend yield, based on last night's closing stock price of
$47.40. The stock has technical support in the $44-$46 price area.
If the shares can firm up, we see overhead resistance around the
$50-$52 price levels.
Darden Restaurants, Inc. ( DRI ) 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 .
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