Texas Roadhouse price target raised to $175 from $165 at RBC Capital

RBC Capital raised the firm’s price target on Texas Roadhouse to $175 from $165 and keeps a Sector Perform rating on the shares after hosting investor meetings with its management. The firm has come away with greater confidence about the company’s sustainability of comps and upside to margins, the analyst tells investors in a research note. The sustained takeout business post-COVID has been among the drivers of labor productivity improvements, and the company’s management believes they have room for additional productivity gains, the firm added.