Mizuho Raises Darden Restaurants Rating and Price Target
Mizuho has issued a positive outlook for Darden Restaurants, citing that increased tax refunds are expected to drive growth for the company, making its stock more appealing.
The firm upgraded Darden’s stock rating to “outperform” from “neutral” and raised its price target to $235, up from $195. This indicates a potential upside of 14.5% from the stock’s closing price on Thursday.
Analyst Nick Setyan noted that the upgrade was influenced by anticipated higher sales growth at two of Darden’s key chains: LongHorn Steakhouse and Olive Garden. He pointed out that LongHorn is becoming more appealing to customers amidst rising beef prices at grocery stores, while Olive Garden’s improved marketing efforts could drive stronger growth.
Setyan also highlighted that higher tax refunds could contribute roughly 1.3% to the sales growth of both restaurant brands. He forecasts that all Darden brands will face reduced labor and commodity inflation in fiscal year 2027, despite menu prices continuing to rise compared to fiscal year 2026.
The upgrade aligns with Mizuho’s forecast for 2026, predicting that casual dining restaurants will outperform other sectors. In 2026, Darden’s shares have seen an increase of about 12%.
— Davis Giangiulio
Deutsche Bank Downgrades Sherwin-Williams
Deutsche Bank has downgraded Sherwin-Williams from a “buy” to a “hold.” The firm cited the company’s premium valuation, which is increasingly difficult to justify due to slowing earnings and a weak housing market.
Deutsche Bank revised its price target for Sherwin to $380, indicating an anticipated upside of about 8%. The firm believes that 2026 will mark the third consecutive year of earnings growth below 10% for Sherwin, despite its stock being valued like an “elite growth company.”
— Yun Li
