Darden Restaurants Inc: Stock Analysis & Analyst Update

Based on the Darden Restaurants Inc stock forecast from 21 analysts, the average analyst target price for Darden Restaurants Inc is USD 205.56 over the next 12 months. Darden Restaurants Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Darden Restaurants Inc is Neutral, which is based on 2 positive signals and 2 negative signals. At the last closing, Darden Restaurants Inc’s stock price was USD 199.93. Darden Restaurants Inc’s stock price has changed by +7.50% over the past week, +4.56% over the past month and +21.09% over the last year.

Darden Restaurants Inc. (DRI)

Darden Restaurants Inc., the parent company of well-known brands like Olive Garden, LongHorn Steakhouse, and Bahama Breeze, has received an upgrade in its target price from $205 to $215 by Stifel Nicolaus (Analyst Rank#14), a prominent investment research firm.

Stock Forecast & Analysis

Analyst Target Price and Forecast

  • Average Target Price of USD 205.56: According to the 21 analysts covering Darden Restaurants, the consensus target price is USD 205.56 for the next 12 months. This target suggests an upside potential of approximately 2.8% from its latest closing price of USD 199.93. Given this, analysts believe there is room for growth in the stock price over the next year, although the upside is relatively modest. This target reflects confidence in the company’s continued performance, supported by strong management and robust operational strategies.

2. Analyst Rating: Strong Buy

  • Strong Buy: Darden Restaurants holds an overall Strong Buy rating from analysts. This rating indicates that the majority of analysts covering the stock are optimistic about the company’s future prospects. Analysts are likely expecting Darden to continue its solid performance, driven by a resilient business model, good leadership, and a solid record of growth, especially considering the recent challenges in the restaurant sector like inflation and labor shortages.

3. Stock Target Advisor’s Analysis

  • Stock Target Advisor’s Analysis: Stock Target Advisor, which provides its own analysis of Darden Restaurants, has a Neutral rating. This contrasts with the analysts’ “Strong Buy” recommendation, which suggests that Stock Target Advisor’s methodology on its analysis takes a more cautious or balanced view of the stock. The “Neutral” rating is based and assessed on a mixed assessment of 2 positive  fundamentals and 2 negative fundamentals.

Outlook

The consensus forecast for Darden Restaurants is generally positive, with analysts giving it a “Strong Buy” rating, indicating confidence in its performance over the next year. However, Stock Target Advisor’s Neutral rating suggests caution, highlighting the mixed signals surrounding the company’s outlook, such as inflationary pressures and competition in the restaurant space.  Despite these potential risks, Darden has shown strong performance over the past year, with its stock appreciating significantly. Investors may see it as a solid, stable growth option, although the limited upside in the near term (based on the target price of USD 205.56) suggests that the market may already be pricing in much of the company’s potential. Those interested in Darden’s stock should monitor both the broader economic conditions and any shifts in consumer behavior or company-specific developments that could impact its performance going forward.

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