Brinker International, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Zachary Fadem from Wells Fargo maintained a Buy rating on the stock and has a $160.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Zachary Fadem has given his Buy rating due to a combination of factors that highlight Brinker International’s potential for growth despite current challenges. The company has shown impressive performance with Chili’s achieving a significant 21% increase in comparable sales, which stands out in the casual dining sector. This strong performance is coupled with new initiatives such as successful new product launches and marketing strategies that are expected to drive further growth.
Despite some headwinds from macroeconomic pressures and challenges at Maggiano’s, Fadem sees these as manageable in the long term. The company’s price-to-earnings ratio is near three-year lows, presenting an attractive entry point for investors. Additionally, as the company moves past the current quarter’s comparisons, there is potential for upward revisions in estimates, further supporting the Buy rating.
In another report released yesterday, Stifel Nicolaus also reiterated a Buy rating on the stock with a $200.00 price target.
EAT’s price has also changed moderately for the past six months – from $136.890 to $114.980, which is a -16.01% drop .