|Over a week ago|
Darden put volume heavy and directionally bearish » 13:3509/2909/29/20
Bearish flow noted in…
Bearish flow noted in Darden with 2,308 puts trading, or 1.3x expected. Most active are Oct-20 80 puts and Oct-20 75 puts, with total volume in those strikes near 1,000 contracts. The Put/Call Ratio is 1.83, while ATM IV is up over 1 point on the day. Earnings are expected on December 18th.
Darden upgraded to Buy from Hold at Argus » 07:2709/2909/29/20
Argus analyst John…
Argus analyst John Staszak upgraded Darden to Buy from Hold with a $115 price target. The analyst believes that the company has "turned a corner" in Q1, posting a "more moderate" decline in comps along with better than expected earnings. Staszak also cites the management's expectations for further progress in Q2, and he sees its guidance as achievable given that the company has reopened over 90% of restaurant dining room. Based on the prospects for "improving" comp sales and earnings, Staszak believes that Darden shares are undervalued at 16.1-times his expected FY22 EPS, also raising his forecast for FY21 to $4.01 from $3.00 and for FY22 to $6.10 from $5.60.
Darden price target raised to $115 from $90 at Loop Capital » 07:2209/2809/28/20
Loop Capital analyst…
Loop Capital analyst Lynne Collier raised the firm's price target on Darden to $115 from $90 and keeps a Buy rating on the shares after its better than expected results reported last week. The analyst says the company's profitability was "impressive", and she remains positive on its "best-in-class" management, "impressive" cost controls and "sustainable" efficiencies, its ability to pick up market share, and its "solid" liquidity position. Collier is also raising her FY21 EPS view on Darden to $4.40 from $3.19
Darden put volume heavy and directionally bearish » 10:5509/2509/25/20
Bearish flow noted in…
Bearish flow noted in Darden with 1,684 puts trading, or 2x expected. Most active are Oct-20 70 puts and Nov-20 100 calls, with total volume in those strikes near 1,300 contracts. The Put/Call Ratio is 1.83, while ATM IV is up nearly 2 points on the day. Earnings are expected on December 18th.
Darden price target raised to $115 from $110 at MKM Partners » 09:3009/2509/25/20
MKM Partners analyst…
MKM Partners analyst Brett Levy raised the firm's price target on Darden to $115 from $110 and keeps a Buy rating on the shares. The company's Q1 earnings beat highlighted the strength of its brands and operations, the analyst tells investors in a research note, stating that he remains constructive on its prospects despite the "uncertain" landscape. Cost management and execution should drive "solid profitability" for Darden in spite of the capacity restriction headwinds, Levy states.
Darden price target raised to $96 from $84 at BMO Capital » 08:5209/2509/25/20
BMO Capital analyst…
BMO Capital analyst Andrew Strelzik raised the firm's price target on Darden to $96 from $84 but keeps a Market Perform rating on the shares. The company's "efficient" and "impressive" cost management more than offset its softer comps, leading to a Q1 earnings beat, the analyst tells investors in a research note. Strelzik is also raising his FY21 EPS view to $4.45 from $2.79 but prefers to remain on the sidelines due to Darden's valuation and the "largely uncertain" macro and industry backdrop.
Darden price target raised to $128 from $100 at Truist » 08:3709/2509/25/20
Truist analyst Jake…
Truist analyst Jake Bartlett raised the firm's price target on Darden to $128 from $100 and keeps a Buy rating on the shares after its better than expected Q1 results. The company has used the COVID-19 disruption to "reimagine almost every aspect of their business," driving margins some 100-150bps higher than its pre-COVID levels, the analyst tells investors in a research note. Capacity restrictions are muting the recovery of Darden's comps relative to its peers, but sales should improve as restrictions ease, Bartlett states.
Darden price target raised to $115 from $100 at Raymond James » 08:1909/2509/25/20
Raymond James analyst…
Raymond James analyst Brian Vaccaro raised the firm's price target on Darden to $115 from $100 and keeps an Outperform rating on the shares following the company's "strong" Q1 margin performance. Vaccaro believes Olive Garden trends have improved in September, with additional room for improvement if California continues to relax dining rooms restrictions and additional partitions are installed.
Darden price target raised to $105 from $82 at JPMorgan » 08:0409/2509/25/20
JPMorgan analyst John…
JPMorgan analyst John Ivankoe raised the firm's price target on Darden to $105 from $82 and keeps an Overweight rating on the shares following the company's better than expected Q1 results. Darden's margins "amazed" in a difficult sales environment while the relaxation in government restrictions should be a key driver in an Olive Garden same-store-sales recovery, especially as the brand is not using delivery or outdoor dining as an offset to dining room capacity, Ivankoe tells investors in a research note.
Darden price target raised to $112 from $71 at Morgan Stanley » 07:2909/2509/25/20
Morgan Stanley analyst…
Morgan Stanley analyst John Glass raised the firm's price target on Darden to $112 from $71 following the company's quarterly report. While sales modestly missed expectations, margins "were the story of the quarter, and a clear upside surprise," according to Glass, who thinks the company's restructuring actions should benefit overhead expenses in quarters to come. As a result of these savings, which he thinks are sustainable post-pandemic and won't need to be reinvested in the business as sales recover, Darden now believes that it can achieve its pre-COVID EBITDA dollars even at a 10% reduced level of sales, noted Glass, who keeps an Equal Weight rating on the shares.