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Investing.com - Stephens raised its price target on Darden Restaurants (NYSE:DRI) to $215.00 from $212.00 on Friday, while maintaining an Equal Weight rating on the restaurant operator’s shares. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with a P/E ratio of 24.
The firm noted that Darden remains focused on operational execution, margin management, and leveraging its portfolio scale to drive stable results against an uncertain macro backdrop. With revenue growth of 6.03% and a strong financial health score of 2.79 on InvestingPro, Stephens highlighted that the company’s first-quarter fiscal 2026 trends remained solid through mid-June, with foot traffic appearing steady across core brands thereafter.
Digital initiatives continue to lift results for the Olive Garden parent, with Uber Direct exiting the fourth quarter of fiscal 2025 at approximately 5% mix at Olive Garden, while Cheddar’s is now scaling its delivery operations. The company’s marketing strategy remains focused on targeted digital and performance media. Notably, Darden has maintained dividend payments for 31 consecutive years, currently offering a 2.81% yield.
Stephens expects Fine Dining comps to remain negative but improve sequentially. The firm models fiscal year 2026 same-store sales modestly above the midpoint of guidance at 3.0% versus the company’s 2.8% projection.
Investor focus will likely be on the first-quarter fiscal 2026 exit rate, as Darden’s trends could serve as a bellwether for overall industry recovery entering the second half of the calendar year, according to Stephens.
In other recent news, Darden Restaurants is gearing up for its fiscal first-quarter 2026 earnings report, with various analyst firms providing insights. Truist Securities has maintained its Buy rating with a $252 price target, anticipating strong first-quarter results that could lead to increased guidance for the fiscal year. They suggest Olive Garden might exceed same-store sales expectations, estimating a growth of 7.0% compared to the consensus of 5.9%. Meanwhile, Evercore ISI has adjusted its price target to $245 from $250, citing higher food cost inflation as a factor in trimming its earnings per share forecast to $10.71, still above the consensus estimate. KeyBanc has also lowered its price target to $240, maintaining an Overweight rating while expressing concerns over rising beef prices. BMO Capital has reiterated a Market Perform rating with a $215 price target, expecting Darden’s results to align with market expectations. Additionally, Melius Research initiated coverage with a Hold rating and a $240 price target, praising Darden’s consistent performance in full-service dining. These developments reflect the varied analyst perspectives on Darden Restaurants’ upcoming financial performance.
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