Darden Restaurants (DRI) PT Raised to $210 at Raymond James

Raymond James analyst Brian Vaccaro raised the price target on Darden Restaurants (NYSE: DRI) to $210.00 (from $200.00) while maintaining a Outperform rating.

The analyst comments "We reiterate our Outperform rating on DRI following the company’s F2Q results reflecting better than expected comps at Olive Garden (OG) and Longhorn (LH) partially offset by higher than expected food inflation (beef). We are optimistic that OG and LH can continue to generate significant comp outperformance driven by strong ops/execution (guest satisfaction scores at alltime highs), effective value strategies (lighter portions at low-to-mid teens price points rolling system-wide at OG in January), and continued tailwinds related to first-party delivery (now at OG, Cheddar’s, and Yard House (YH)). Higher commodity inflation presents a near-term headwind, though we continue to expect y/y EPS growth to accelerate in 2H FY26 helped by higher menu pricing and a return to y/y leverage in labor and Other Opex (lap “brand mix” headwinds in F3Q, first-party delivery fees in F4Q). While segment trends have softened in recent months (including December hit by unusually cold temps), management seemed to strike an optimistic tone on stimulus/refund benefits into 2026 (link here). We are adjusting our estimates, as detailed below, and raising our 12-month price target to $210."

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