Brinker International ‘Buy,’ Target Price Raised

newratings.com:

Analysts at UBS maintain their ‘buy’ rating on Brinker International Inc. The target price has been raised from $23 to $25.

In a research note published yesterday, the analysts mention that the company’s ROIC & free cash flow yields are likely to improve substantially over the forthcoming 1-to-2 years on account of a re-imaging programme at the core Chili’s chain, re-franchising, the pending sale of the Mac Grill chain and a slowdown in capex. The recently completed corporate restructuring is likely to help Brinker International control its overhead costs going forward, the analysts say.