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Darden Restaurants’ Target, Estimates Cut at UBS; Shares Fall (DRI)

Restaurant chain operator Darden Restaurants, Inc. ( DRI ) on Wednesday caught some cautious sentiment from analysts at UBS, sending its shares lower in premarket trading.

UBS maintained its "Buy" rating on DRI but slashed its price target to $51, suggesting a smaller 10% upside to the stock's Tuesday closing price of $46.18.

The firm also cut its earnings estimates for Darden, citing rising input costs and lower sales.

Darden Restaurants shares fell $2.08, or -4.5%, in premarket trading Wednesday.

The Bottom Line

Shares of Darden Restaurants ( DRI ) have a 3.72% dividend yield, based on last night's closing stock price of $46.18. The stock has technical support in the $42-$44 price area. If the shares can firm up, we see overhead resistance around the $48-$50 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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