[ad_1]
Brinker International shares gained more than 2% after JPMorgan raised its rating on the Chili’s parent thanks to an attractive valuation. The bank upgraded the stock to overweight from neutral. Analyst John Ivankoe did trim his price target to $175 from $180, which still signals about 38% upside ahead. While the stock down 4% year to date, Ivankoe thinks this may serve as an attractive entry point given the company’s valuation. He said Brinker trades at 15 times calendar 2027 earnings estimates, below rivals Darden and Texas Roadhouse. EAT YTD mountain EAT YTD chart “We rate Brinker OW as the stock has given up most 2025 gains despite a CEO clearly interested in continued reinvestments to finally differentiate Chilis in a long commoditized — yet very important bar grill segment,” Ivankoe wrote. “Overall, we believe shorter term investors are too focused on ‘difficult compares’ and not enough for the various pieces in place to allow the core Chili’s brand to regain 20+ years of lost [same-store sales] traffic.” The analyst also pointed to remodeling efforts, a return to net unit growth alongside potentially readding broilers to kitchens the improve the execution of certain core menu dishes. Ivankoe’s enthusiasm for the stock counts him among a minority of analysts covering Brinker International. Of the 20 analysts covering the name, seven have assigned it either a strong buy or buy rating while 13 have rated it as a hold. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
You might also like
[ad_2]
Source link
