Jefferies downgraded DRI to "underperform" and slashed its price target to $124
Darden Restaurants, Inc. (NYSE:DRI) stock is muted after Jefferies downgraded the Olive Garden parent to "underperform" from "hold" and slashed its price target by $30 to $124. The analyst said the company could lose market share in a "more promotional" environment, and cited potential challenges for DRI's near-term fundamentals.
Darden stock has had a rough go of it on lately. While last seen marginally higher, the shares are currently mired in an 11-day losing streak. Now trading at its lowest level since mid-October 2023, the equity has shed 17.4% in the last 12 months.
Keep an eye on DRI's 14-Day Relative Strength Index, last seen at 13 and firmly in "oversold" territory, which indicates a short-term bottom could be imminent.
However, there's also potential for more analysts to follow Jefferies lead. Despite a 17% year-to-date deficit, 18 of 25 covering brokerages recommend a "buy" or better. Plus, the consensus 12-mont target price of $172.83 is a 25.4% premium to Darden Restaurant stock's current perch.