Maxim Group Keeps a Buy Rating on Brinker International (EAT)

In a report released yesterday, Stephen Anderson from Maxim Group maintained a Buy rating on Brinker International (EATResearch Report), with a price target of $58. The company’s shares opened today at $40.50.

Anderson observed:

“We maintain our Buy rating and $58 price target on Brinker International (EAT) following the announcement earlier today that Chili’s (87% of TTM sales) had reached an exclusive nationwide third-party delivery agreement with privately- owned DoorDash. We expect the nationwide delivery launch with DoorDash to supplement Chili’s strength in off-premise sales, which now account for 13% of Chili’s total sales. We raise our FY20 EPS estimate to $4.23, from $4.21 (vs. $4.08 Street) as we increase our full-year blended comp estimate to +2.4%, from +2.3% (vs. +1.6% Street). We maintain our FY21 EPS estimate of $4.72 (vs. $4.24 Street), based on our unchanged estimate of a +1.9% blended comp (vs. +1.6% Street).”

According to TipRanks.com, Anderson is a 5-star analyst with an average return of 8.9% and a 65.0% success rate. Anderson covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Good Times Restaurants Inc, and Famous Dave’s Of America.

Currently, the analyst consensus on Brinker International is a Strong Buy with an average price target of $50.25, representing a 24.1% upside. In a report released today, Telsey Advisory also upgraded the stock to Buy with a $47 price target.

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The company has a one-year high of $54.14 and a one-year low of $36.82. Currently, Brinker International has an average volume of 914.2K.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EAT in relation to earlier this year.

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Brinker International, Inc. engages in owning, developing, and franchising Chili’s Grill and Bar and Maggiano’s Little Italy restaurant brands. It operates through the following segments: Chili’s, and Maggiano’s.