Jon Tower, an analyst from Citi, maintained the Hold rating on Brinker International. The associated price target is $156.00.
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Jon Tower has given his Hold rating due to a combination of factors impacting Brinker International’s stock performance. The company is expected to show solid results in terms of share gains, margin improvements, and an EPS beat for the upcoming quarter. However, the start of the following quarter appears to be on a softer note, aligning with broader industry trends.
Despite the anticipated positive performance, the stock has underperformed compared to its peers over the past three months. This underperformance, coupled with the need for ongoing product upgrades and reinvestments, suggests a cautious approach. Additionally, while there is potential for a short-term rally if guidance is reiterated, uncertainties in consumer behavior and investment plans contribute to the Hold rating.
Tower covers the Consumer Cyclical sector, focusing on stocks such as Chipotle, Cracker Barrel, and Darden Restaurants. According to TipRanks, Tower has an average return of 12.4% and a 58.82% success rate on recommended stocks.