Jefferies Maintains “Buy” on Dunkin’ Brands Following Meeting with Management (DNKN)

Share |

Coffee and doughnuts retailer Dunkin' Brands Group, Inc. ( DNKN ) on Monday received some continued bullish support from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating and $36 price target on DNKN, suggesting an 8.5% upside to the stock's Friday closing price of $33.18.

A Jefferies analyst commented, "We spent time visiting clients last week with DNKN CFO (and now newly named Chief Global Strategy Officer) Neil Moses and Director of IR, Stacey Caravella. Although the stock trades at a premium to other QSRs and more in line with specialty coffee companies, we find this franchise model attractive for its predictability and growth opportunity during these uncertain times."

Continuing, "We suspect DNKN would consider a buyback of stock directly from financial sponsors (who still own ~30% collectively); this share count reduction would drive accretion & EPS gains. We continue to like this defensive story and remain buyers, particularly on any dips."

Dunkin' Brands shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Dunkin' Brands ( DNKN ) have a 1.81% dividend yield, based on Friday's closing stock price of $33.18. The stock has technical support in the $29-$30 price area. The shares are trading right near 52-week highs.

Dunkin' Brands Group, Inc. ( DNKN ) is not recommended at this time, holding a 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 The NASDAQ OMX Group, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: DNKN

More from

Related Videos



Most Active by Volume

  • $17.88 ▼ 1.38%
  • $18.51 ▼ 6.98%
  • $94.01 ▼ 1.26%
  • $121.30 ▼ 0.87%
  • $23.28 ▼ 9.17%
  • $14.20 ▼ 0.77%
  • $14.83 ▼ 1.79%
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by