Savvy Trades and Investments

[researcher59]

EAT analyst comments on 8/13 -

briefing -

Brinker: What’s Not to Like? We Expect FY20 to Build on FY19 Turnaround; Our Top-Pick; Maintain Buy and $58 PT -- Maxim Group (38.27 -1.59) : Maxim's Stephen Anderson noted, "We maintain our Buy rating and $58 price target on Brinker International (EAT) following the release of better-than-expected F4Q19 (June) results and FY20 guidance earlier today. Although we lower our F1Q20 (September) EPS estimate to $0.43, from $0.46, we expect quarterly comps at Chili's (87% of TTM sales) to fall within full-year guidance of up 1.75%-2.5%. Our increased full-year EPS estimates of $4.30, from $4.25 (vs. $4.06 Street and $4.15-$4.35 guidance) for FY20, and of $4.80, from $4.77 (vs. $4.22 Street) for FY21, reflect our outlook for long-term, low-teen percent EPS growth. EAT, with its compelling valuation, remains our top restaurant pick, and we believe a relatively high short interest provides additional fuel for potential upside."