As reported earlier, RBC Capital analyst David Palmer downgraded Dunkin' Brands to Sector Perform from Outperform and kept his $75 price target. The analyst notes that while sales have accelerated sequentially, the current valuation of 22-times his expected FY20 earnings "reflects much of the turnaround". Palmer is still positive on the company's sales improvement attributable to better "limited time offers" and "value offers", with further investment in rising espresso beverage demand expected to support performance in 2019. The analyst adds that while the company may be attractive to a potential acquirer, its valuation "limits the probability".