Analyst Brian Harbour from Morgan Stanley maintained a Buy rating on Darden Restaurants and increased the price target to $238.00 from $235.00.
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Brian Harbour has given his Buy rating due to a combination of factors related to Darden Restaurants’ financial performance and strategic positioning. Despite a modest shortfall in key performance indicators for the quarter, Harbour believes that the fundamentals of the company remain strong. The stock’s valuation, currently at approximately 17.5 times the projected earnings for 2026, is seen as reasonable unless there is a more pessimistic macroeconomic outlook.
Harbour acknowledges some risks, such as the lack of margin leverage and pressures from food costs, particularly in the second quarter due to beef and seafood prices. However, he notes that Darden is effectively managing these challenges through efficiencies in labor, marketing, and operational expenses. The company’s execution and profit and loss visibility are viewed positively, and Harbour maintains a price target of $238, reflecting confidence in Darden’s ability to navigate current market conditions.
In another report released today, Citi also maintained a Buy rating on the stock with a $239.00 price target.
DRI’s price has also changed slightly for the past six months – from $188.070 to $192.740, which is a 2.48% increase.