On Thursday, Raymond (NSE:RYMD) James reaffirmed its Strong Buy rating on Darden Restaurants (NYSE:DRI) with a steady price target of $65.00. This aligns with broader market sentiment, as InvestingPro data shows 14 analysts have recently revised their earnings estimates upward for the upcoming period. The company, currently valued at $22.95 billion, has demonstrated solid revenue growth of 5.14% over the last twelve months.
Vaccaro highlighted the significant role of Darling Ingredients (NYSE:DAR)' joint venture, Diamond Green Diesel (DGD), in the renewable diesel (RD) and sustainable aviation fuel (SAF) markets. The market appears to share this optimistic outlook, as InvestingPro data reveals the stock has surged 33% over the past six months and is currently trading near its 52-week high of $194.85.
The analyst pointed out that despite challenging macroeconomic conditions in recent quarters, Darling Ingredients' upstream operations position the company strategically for long-term success. Vaccaro expressed confidence in the potential for a recovery in the company's business fundamentals and trading multiple as it approaches 2025.
The reaffirmation of the Strong Buy rating is based on the belief that Darling Ingredients is currently at or near a low point regarding fundamentals and market sentiment. The expectation of a business recovery into 2025 underpins the positive outlook maintained by Raymond James.
In other recent news, Darden Restaurants, Inc. has been in the spotlight following several key developments. The company reported impressive earnings per share of $2.03 for the second quarter of fiscal year 2025, slightly above the consensus estimate of $2.02. Revenue growth over the last twelve months was nearly 6%, reaching $11.4 billion. Same-store sales also grew by 2.4%, surpassing the Street's expectation of 1.4%.
Furthermore, the retirement of board member Nana Mensah was announced, with no immediate plans for a successor or changes to the board's composition. In response to these developments, several financial firms have revised their outlook on the company. KeyBanc Capital Markets and Oppenheimer have both raised their price targets to $200, while BMO Capital raised its target to $175.
Stephens also increased its price target for Darden to $175, maintaining an Equal Weight rating on the stock. Finally, Darden has maintained a consistent dividend payment for 30 consecutive years, currently yielding 3.05%. These are all recent developments in the company's ongoing journey.
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