Darden upgraded to Buy at BTIG on ‘compelling valuation’

As previously reported, BTIG upgraded Darden to Buy from Neutral with a $175 price target. The stock’s performance has languished year-to-date, but investor sentiment has been “overly worrisome”, creating “compelling” valuations for the shares, the analyst tells investors in a research note. BTIG contends that Darden management can lean into advertising, promotions, or modest price increases to drive same-store sales growth and support earnings. The firm also believes that investors are not giving the stock enough credit for its 3.5% dividend yield.