Morgan Stanley Forecasts Strong Price Appreciation for Brinker International (NYSE:EAT) Stock

Key Points

• Morgan Stanley has raised its target price for Brinker International (NYSE:EAT) from $149.00 to $161.00, implying a potential upside of 1.28% from the current stock price.
• Brinker International recently reported a quarterly earnings per share of $2.49, exceeding analysts' estimates by $0.02, alongside a revenue increase of 21.0% year-over-year.
• Various equities research firms have increased their price targets for Brinker, with an average target now at $171.41, reflecting a consensus rating of "Hold."

Brinker International (NYSE:EAT - Get Free Report) had its target price upped by equities research analysts at Morgan Stanley from $149.00 to $161.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the restaurant operator's stock. Morgan Stanley's price target would suggest a potential upside of 1.28% from the stock's previous close.

Several other research firms have also commented on EAT. Barclays lifted their price target on shares of Brinker International from $166.00 to $170.00 and gave the company an "equal weight" rating in a research report on Thursday. BMO Capital Markets lifted their price target on shares of Brinker International from $150.00 to $170.00 and gave the company a "market perform" rating in a research report on Thursday. Bank of America lifted their price target on shares of Brinker International from $185.00 to $186.00 and gave the company a "neutral" rating in a research report on Friday, July 18th. Stifel Nicolaus lifted their price target on shares of Brinker International from $200.00 to $215.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. Finally, Evercore ISI lifted their price target on shares of Brinker International from $180.00 to $190.00 and gave the company an "in-line" rating in a research report on Thursday. Thirteen equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, Brinker International has a consensus rating of "Hold" and an average price target of $171.41.

Brinker International Stock Up 1.0%

Shares of EAT stock traded up $1.59 during mid-day trading on Thursday, hitting $158.97. The company's stock had a trading volume of 835,504 shares, compared to its average volume of 1,494,936. The stock has a market cap of $7.07 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 0.37 and a beta of 1.68. Brinker International has a 52-week low of $65.26 and a 52-week high of $192.21. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.23 and a current ratio of 0.28. The business has a 50-day moving average price of $168.48 and a 200 day moving average price of $158.35.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.02. Brinker International had a return on equity of 333.03% and a net margin of 6.50%. The company had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.42 billion. During the same period in the previous year, the firm posted $1.61 earnings per share. The firm's revenue for the quarter was up 21.0% on a year-over-year basis. Research analysts predict that Brinker International will post 8.3 EPS for the current fiscal year.

Insider Transactions at Brinker International

In other news, Director Joseph Michael Depinto sold 10,000 shares of the stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $170.36, for a total value of $1,703,600.00. Following the completion of the transaction, the director owned 99,297 shares in the company, valued at approximately $16,916,236.92. This represents a 9.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.72% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Brinker International

Hedge funds have recently made changes to their positions in the business. Wells Fargo & Company MN boosted its stake in shares of Brinker International by 17.1% in the fourth quarter. Wells Fargo & Company MN now owns 62,196 shares of the restaurant operator's stock valued at $8,228,000 after buying an additional 9,062 shares during the period. Raymond James Financial Inc. acquired a new position in Brinker International in the fourth quarter valued at approximately $6,507,000. Summit Investment Advisors Inc. grew its holdings in shares of Brinker International by 3.4% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,509 shares of the restaurant operator's stock valued at $596,000 after buying an additional 148 shares during the last quarter. Barclays PLC grew its holdings in shares of Brinker International by 195.0% during the fourth quarter. Barclays PLC now owns 169,202 shares of the restaurant operator's stock valued at $22,383,000 after buying an additional 111,841 shares during the last quarter. Finally, Mariner LLC grew its holdings in shares of Brinker International by 64.8% during the fourth quarter. Mariner LLC now owns 8,482 shares of the restaurant operator's stock valued at $1,122,000 after buying an additional 3,336 shares during the last quarter.

Brinker International Company Profile

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.

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