Ruth’s downgraded to Market Perform from Outperform at Raymond James

Raymond James analyst Brian Vaccaro double downgraded Ruth‘s Hospitality to Market Perform from Outperform without a price target. The analyst sees higher inflation limiting the company’s earnings growth in 2023. Ruth’s sales are still well above 2019 levels and its margins should recover to at least 2019 levels, but the stock is now fairly valued, Vaccaro tells investors in a research note. The analyst moves to the sidelines pending improvement in inflation and macro visibility.