Darden Restaurants’ Stock Surpasses Analyst Target, What’s Next?
Recently, shares of Darden Restaurants, Inc. (Symbol: DRI) have exceeded the average analyst 12-month target price of $202.46, trading at $208.56 per share. When a stock hits the target set by analysts, they typically have two reactions: they may either downgrade their valuation or raise their target price to reflect new insights. Analyst responses may also depend on the underlying business developments influencing the stock’s rise. If the outlook for Darden seems positive, increasing the target price might be warranted.
Within the Zacks coverage universe, 28 different analysts have contributed to the average target for Darden Restaurants, Inc. However, this average figure is just a mathematical calculation. Some analysts have lower price targets, such as one forecasting a price of $150.00, while another sets a target as high as $230.00. The standard deviation among these targets is $18.894, indicating varied expectations among analysts.
The rationale for examining the average DRI price target lies in harnessing the “wisdom of crowds.” This approach incorporates insights from multiple analysts rather than relying on a single expert’s opinion. DRI’s recent trading above the average target price of $202.46/share signals investors to reassess the company’s prospects. They must consider whether this price is merely a stepping stone toward an even higher target or if it has reached a valuation point that prompts profit-taking. Below is a table summarizing the current analysis from the experts covering Darden Restaurants, Inc.
| Recent DRI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 17 | 17 | 16 | 16 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 8 | 8 | 9 | 9 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.73 | 1.73 | 1.8 | 1.8 |
The average rating in the table above uses a scale from 1 to 5, with 1 being a Strong Buy and 5 a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. For further insights, readers may access the latest Zacks research report on DRI — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
