In a report released today, Andrew Charles from TD Cowen maintained a Hold rating on Darden Restaurants (DRI – Research Report), with a price target of $190.00.
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Andrew Charles has given his Hold rating due to a combination of factors, including the need for more evidence that Darden’s initiatives will lead to significant market share gains. While the Uber Direct partnership is contributing to a modest increase in Olive Garden’s same-store sales, the stock’s premium valuation compared to historical levels suggests that there may be better investment opportunities elsewhere in the sector.
Additionally, although there has been a positive reaction to the guidance for improved same-store sales in the fourth quarter, the sustainability of this rebound is uncertain. The company is benefiting from a resurgence in full-service dining, but there are concerns about whether this trend will continue given the current consumer sentiment. Despite proactive measures to boost sales, Olive Garden’s performance has been largely in line with the industry average, which supports the Hold rating.
In another report released on March 18, Robert W. Baird also maintained a Hold rating on the stock with a $192.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRI in relation to earlier this year.