Analyst Andrew Strelzik of BMO Capital maintained a Hold rating on Darden Restaurants (DRI – Research Report), boosting the price target to $215.00.
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Andrew Strelzik’s rating is based on a combination of factors that reflect both optimism and caution regarding Darden Restaurants’ future performance. The company has recently shifted its strategy to focus more on sales growth, which is seen as a positive move that could support a higher valuation multiple. Despite this strategic pivot, the current stock price already reflects near-term opportunities, as evidenced by the shares trading at nearly 13 times the projected FY26 EBITDA.
While Darden Restaurants has shown strong performance with Olive Garden and LongHorn exceeding expectations, the company’s FY26 EPS guidance was slightly below consensus due to macroeconomic uncertainties and planned investments. This cautious outlook on consumer spending and valuation pressures has led to a Hold rating. However, the potential for positive earnings revisions remains, given the conservative nature of the company’s guidance and the continued momentum in same-store sales growth, driven by initiatives like the Uber Direct delivery service.
In another report released on June 23, TD Cowen also maintained a Hold rating on the stock with a $235.00 price target.
Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRI in relation to earlier this year.