Brinker initiated with an Underweight at Wells Fargo

Wells Fargo analyst John Parke initiated coverage of Brinker International with an Underweight rating and $31 price target. The shares are priced for turnaround upside, yet the company’s initiatives are in the early days, the analyst tells investors in a research note. The firm says Brinker underperforms in a slowing macro environment as its assets are “prone to heightened trade down and promotion.” Considering the company’s negative traffic and fading price/mix, fiscal 2024 consensus comp estimates “look optimistic,” contends Wells.