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JP Morgan Cuts Darden Restaurants to “Neutral” on a Valuation Call (DRI)

Posted
9/24/2012 9:43:00 AM
By: Dividend.com
Referenced Stocks:DRI

Full-service restaurant chain operator Darden Restaurants, Inc. ( DRI ) on Monday caught a big downgrade from analysts at JP Morgan

The firm cut its rating on DRI from "Overweight" to "Neutral" and lowered its price target from $63 to $61. That new target suggests a smaller 6.6% upside to the stock's Friday closing price of $57.21.

JP Morgan didn't offer much in the way of commentary regarding the downgrade, but did say the move was largely a valuation call.

Darden Restaurants shares fell $1.14, or -2%, in premarket trading Monday.

The Bottom Line
Shares of Darden Restaurants ( DRI ) have a 3.50% dividend yield, based on Friday's closing stock price of $57.21. The stock has technical support in the $52-$54 price area. The shares are trading near all-time highs.

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 .