Stifel analyst Paul Westra sees a short-term Underweight opportunity on Hold rated Brinker shares ahead of its FQ2 report on Wednesday, January 25. The firm's sales survey indicates that the Q4 US Casual-Dining-category comp of down 3.1% was 190bps below consensus' US Casual-Dining-category's estimate of down 1.2%. Westa lowered Brinker's FQ2 estimate to 70c from 74c, F17 to $3.28 from $3.36, versus guidance of $3.40-$3.50, and cut his F18 earnings estimate to $3.45 versus consensus of $3.70, and his prior estimate of $3.78. The analyst does not believe that all of the expected F2Q "miss-and-cut" earnings release is fully priced-in and continues to see downside risk to he new, 7% below consensus, F18 earnings estimate.

Raymond James raised the firm's price target on Brinker (EAT) to $54 from $50 and keeps a Strong Buy rating on the shares. The firm maintains a selective stance towards its restaurant coverage universe as industry sales have underwhelmed in recent months, causing Raymond James to increasingly favor stocks it view as having "idiosyncratic factors trading at attractive valuations," such as Brinker, Shake Shack (SHAK), First Watch (FWRG) and Bloomin' Brands (BLMN), the analyst tells investors in a group earnings preview note.