Cracker Barrel price target raised to $42 from $39 at Citi

Citi raised the firm’s price target on Cracker Barrel (CBRL) to $42 from $39 and keeps a Sell rating on the shares. The firm’s FY25 and FY26 EPS estimates move up to $2.62 and $2.57 from $2.38 and $2.21, respectively, on near-term adjustments to same-store sales growth expectations and shifting labor spend in FY26, the analyst noted. However, the firm adds that “it is hard to make the case for positive risk-reward” heading into the company’s fiscal Q3 report given current industry challenges around still pressured lower-income consumers, ramping capital spending with unknown targeted returns, and shares that have rallied 19% over the past roughly three months.