J.P. Morgan analyst John Ivankoe has maintained their neutral stance on BLMN stock, giving a Hold rating on May 8.
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John Ivankoe’s rating is based on the current financial and strategic position of Bloomin’ Brands. The company is undergoing a significant reinvestment phase, focusing on improving pricing, quality, service, and physical assets to ensure long-term sustainability. Despite these efforts, the anticipated reinvestments may not be sufficient to regain market share from competitors, as reflected in the projected store margins for the upcoming years.
Additionally, the financial strategy involves suspending dividends to allocate cash towards debt reduction, aiming to achieve a more favorable debt-to-EBITDA ratio by the end of 2027. The $9 price target for December 2026 is based on typical market multiples, which do not fully account for the potential brand value of Bloomin’ Brands’ banners, particularly Outback Steakhouse. This cautious outlook, combined with ongoing operational tests and menu simplifications, supports the Hold rating, suggesting investors should maintain their positions without expecting significant short-term gains.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BLMN in relation to earlier this year.