Full-service restaurant operator Brinker International, Inc. (EAT) on Friday saw its coverage re-initiated with an “Outperform” rating by analysts at Wells Fargo.
The firm also set a $37-40 price target range on EAT, suggesting up to a 27% upside to the stock’s Thursday closing price of $31.41.
A Wells Fargo analyst commented, “We expect to see multiple expansion in the coming quarters as Brinker is one of the few restaurant companies poised to maintain same-store sales (SSS) momentum and deliver margin expansion over the balance of 2012 heading into 2013.”
Brinker International shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Brinker International (EAT) have a 2.04% dividend yield, based on last night’s closing stock price of $31.41. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34 price level.
Brinker International, Inc. (EAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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