Brian Harbour, an analyst from Morgan Stanley, maintained the Hold rating on Bloomin’ Brands (BLMN – Research Report). The associated price target remains the same with $9.00.
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Brian Harbour’s rating is based on several considerations regarding Bloomin’ Brands’ current financial and market position. The company’s earnings per share (EPS) and comparable sales were slightly better than expected, but there are ongoing pressures on profit margins. The guidance for the second quarter is lower, and the overall sales environment remains challenging. As a result, there is low visibility on earnings, which creates a difficult setup for the fiscal year.
Harbour notes that while there might be a potential turnaround opportunity for Bloomin’ Brands, the steps necessary to achieve this are not entirely clear, and the process is likely to take time. The consumer environment is tough, with customers becoming more selective in their dining choices, which does not favor Bloomin’ Brands’ Outback Steakhouse. Additionally, the company’s guidance does not fully account for potential investments or changes to its operating model, which adds uncertainty. Given these factors, Harbour maintains a cautious stance and recommends a Hold rating, with a price target of $9.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $9.00 price target.
BLMN’s price has also changed dramatically for the past six months – from $16.780 to $7.260, which is a -56.73% drop .