Coffee and doughnuts retailer Dunkin' Brands Group, Inc. (
) 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
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
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
The Bottom Line
Shares of Dunkin' Brands (
) 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. (
) 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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