Darden Restaurants Shares Surge Past Analyst Target: What’s Next?

In recent trading, shares of Darden Restaurants, Inc. (Symbol: DRI) have surpassed the average analyst 12-month target price of $183.07, now trading at $183.44 per share. When a stock hits an analyst’s target, they typically have two options: either downgrade the stock’s rating due to valuation or adjust their target price upwards. Analysts’ responses may also vary based on the company’s recent developments that have influenced the stock’s rise—if the outlook is positive, it may be time to revise targets higher.

There are 28 different analyst targets contributing to that average for Darden Restaurants, Inc. While the average stands at $183.07, opinions diverge significantly. One analyst has a target as low as $136.00, while another sees potential as high as $206.00. The standard deviation of these targets is $15.427, indicating a range of views among analysts.

The average price target is valuable because it aggregates the opinions of multiple analysts, allowing investors to examine a collective sentiment rather than relying on one expert’s outlook. With DRI now above the average target price, investors may want to consider if this is merely a stepping stone toward even higher targets or if the stock’s valuation is stretched, prompting a reassessment. Below is a breakdown of the current analyst ratings for Darden Restaurants, Inc.:

The average rating in the table is based on a scale from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell. This article utilized information from Zacks Investment Research via Quandl.com.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.