Analyst Brian Harbour of Morgan Stanley maintained a Buy rating on Darden Restaurants (DRI – Research Report), boosting the price target to $235.00.
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Brian Harbour has given his Buy rating due to a combination of factors that suggest a positive outlook for Darden Restaurants. The company has shown a strong performance in recent quarters, with its stock appreciating significantly. This improvement is partly attributed to overcoming previous cyclical challenges, with current expectations indicating a healthy trajectory. Despite potential cyclical concerns, Darden Restaurants is positioned to guide the fiscal year 2026 from a strong standpoint, with comparable sales expected to have improved.
Moreover, the casual dining sector, where Darden operates, is experiencing relative strength, benefiting from demographic trends and a value proposition that resonates with consumers. The company’s Olive Garden brand, in particular, is seeing improvements, aided by delivery services and a market environment that favors well-positioned brands amid ongoing industry bankruptcies. These factors, combined with a favorable valuation and strong top-line trends, support the Buy rating, as Darden is expected to perform well even in varying macroeconomic scenarios.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $235.00 price target.