UBS Lowers Price Target, Estimates for Darden Restaurants (DRI)

Created by Dividend.com

Full-service restaurant operator Darden Restaurants, Inc. (DRI) saw its price target and earnings estimates lowered on Friday by analysts at UBS.

The analyst said it now sees shares of DRI, which closed on Thursday at $31.70, reaching $34. UBS also lowered its earnings estimates for the company, citing a weaker sales outlook. The analyst currently rates the stock as “Neutral.”

Darden Restaurants shares were mostly flat in premarket trading Friday.

The Bottom Line
We removed shares of DRI from our “recommended” list back on Sept.30, when the stock was trading at $36.15. The company has a dividend yield of 3.15%, based on last night’s closing stock price of $31.70. The stock has technical support in the $26-$30 price area. If the shares can firm up, we see overhead resistance around the $35 price level. We would remain on the sidelines for now.

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.