Brinker International (EAT): Assessing Valuation After Bullish Analyst Upgrades and Earnings Estimate Revisions

Brinker International (EAT) just caught investors attention after a cluster of bullish analyst upgrades, tied to stronger fundamentals, leaner costs, and busier dining rooms, pushed the stock meaningfully higher this month.

See our latest analysis for Brinker International.

Those upgrades are landing on top of solid momentum, with an 11.92% 1 month share price return and a powerful 3 year total shareholder return of 358.56%. This suggests investors are steadily repricing Brinker's earnings power higher.

If this renewed enthusiasm for casual dining has you wondering what else might be worth a look, now is a good time to explore fast growing stocks with high insider ownership.

With earnings estimates marching higher and the stock still trading at a discount to analyst targets and intrinsic value, is Brinker genuinely undervalued here, or are markets already factoring in the next leg of growth?

Most Popular Narrative Narrative: 7.2% Undervalued

With Brinker International's fair value pegged at $162.82 versus a last close of $151.05, the most followed narrative sees more upside in the story ahead.

The analysts have a consensus price target of $180.25 for Brinker International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $215.0, and the most bearish reporting a price target of just $160.0.

Read the complete narrative.

Want to see what is powering that upside gap? The narrative leans on rising margins, steady top line growth, and a richer earnings multiple. Curious which specific forecasts really move the needle on that fair value call?

Result: Fair Value of $162.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained labor inflation and a faster shift toward off premise dining could squeeze margins and slow traffic, which may challenge the current upside narrative.

Find out about the key risks to this Brinker International narrative.

Build Your Own Brinker International Narrative

If you are not fully aligned with this view, or simply prefer hands on research, you can build a personalised thesis in minutes: Do it your way.

A great starting point for your Brinker International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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