Analyst Brian Harbour from Morgan Stanley maintained a Buy rating on Darden Restaurants (DRI – Research Report) and increased the price target to $217.00 from $209.00.
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Brian Harbour has given his Buy rating due to a combination of factors, including the consistency and earnings visibility of Darden Restaurants, which he finds appealing in the current uncertain economic environment. He notes that the valuation of the stock is not particularly demanding, making it an attractive investment opportunity. Additionally, Harbour highlights the positive outlook for casual dining, supported by customer exposure and value proposition, which is reflected in recent industry data.
Furthermore, Harbour points out the acceleration in Darden’s business, as indicated by their same-store sales guidance for the fourth quarter. He acknowledges the potential impact of external factors like weather and holidays but remains optimistic about the company’s underlying trends. The introduction of delivery services and promotional deals, such as the limited-time buy one take one home offer, are seen as positive drivers for future growth. Overall, Harbour’s rating reflects confidence in Darden’s specific strengths and the resilience of consumer demand in the dining sector.
In another report released today, Barclays also maintained a Buy rating on the stock with a $235.00 price target.
DRI’s price has also changed moderately for the past six months – from $170.170 to $199.010, which is a 16.95% increase.