Raymond James Downgrades Brinker Int'l (EAT) to Market Perform

Raymond James analyst Brian Vaccaro downgraded Brinker Int'l (NYSE: EAT) from Strong Buy to Market Perform with a price target of $82.50 (from $62.00).

The analyst comments: "We believe the stock is approaching fair value after its ~65% YTD gain, but see room for further upside supported by 1) positive estimate revisions and 2) healthier store margin (mid-teens) and balance sheet dynamics (net debt/EBITDA approaching 1x in NTM vs. > 3x pre-COVID) that justify higher valuation metrics vs. pre-COVID levels. Third party data suggests Chili's comps accelerated sharply in May driven by successful advertising, value promotions, and viral social media posts. We believe comps have moderated through June, but are sustaining strong outperformance vs. flat/slightly negative segment comps (impressive given May TV campaign ended on 6/3)."

For an analyst ratings summary and ratings history on Brinker Int'l click here. For more ratings news on Brinker Int'l click here.

Shares of Brinker Int'l closed at $70.77 yesterday.

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