Evercore ISI analyst David Palmer upgraded Darden (DRI) to Outperform from In Line with a price target of $205, up from $165. The firm’s upgrade is based on growing confidence on incremental sales drivers at Olive Garden, which accounts for 45% of sales, including the company “going on the offensive” with more price point advertising, limited time offers and menu news and the opportunity with Uber Eats (UBER) as a delivery option. The firm believes the company will continue to focus on profitable sales growth, allowing EBITDA margin to improve over the next 12 months, and it also remains confident on Long Horn as it continues to gain share.
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