Dunkin’ Brands Group (NASDAQ:DNKN) was upgraded by equities research analysts at Miller Tabak from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm currently has a $53.00 target price on the stock, up from their previous target price of $46.00. Miller Tabak’s target price suggests a potential upside of 16.02% from the company’s current price.
The analysts wrote, “We upgrade Dunkin’ Brands (DNKN) to a Buy rating (from Hold) and raise our price target to $53 (from $46) ahead of the company’s earnings release on October 24 as we expect three key top-line drivers to support EPS growth of at least 20% through 2015: (1) sustained unit growth at least at the high end of management estimates; (2) the rollout of an expanded ‘DDPerks’ program that we anticipate will lift traffic; (3) a remodeling program that will think will provide a more substantial lift to EPS in the next two years; and now (4) incremental point-of-sale opportunities. We also think a fifth factor—accelerated expansion of the Dunkin’ Donuts brand overseas—will support our top-line growth thesis, particularly in China where we think Dunkin’ can gain market share from weakened rivals such as KFC (owned by YUM). Our revised $53 price target reflects forward valuations that use 2015 as our base valuation year, a resumption of share buybacks, and a sum-of-parts analysis that incorporates continued growth in franchise income both in the U.S. and overseas.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Northcoast Research initiated coverage on shares of Dunkin’ Brands Group in a research note to investors on Friday, August 23rd. They set a “neutral” rating on the stock. Separately, analysts at Longbow Research reiterated a “hold” rating on shares of Dunkin’ Brands Group in a research note to investors on Tuesday, August 20th. They now have a $45.00 price target on the stock. Finally, analysts at Jefferies Group raised their price target on shares of Dunkin’ Brands Group from $44.00 to $53.00 in a research note to investors on Tuesday, August 20th. They now have a “buy” rating on the stock. Seven research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $46.46.
Dunkin’ Brands Group (NASDAQ:DNKN) traded up 0.92% on Monday, hitting $46.10. 138,827 shares of the company’s stock traded hands. Dunkin’ Brands Group has a one year low of $28.97 and a one year high of $46.50. The stock has a 50-day moving average of $44.32 and a 200-day moving average of $42.12. The company has a market cap of $4.903 billion and a P/E ratio of 38.98.
Dunkin’ Brands Group (NASDAQ:DNKN) last issued its quarterly earnings data on Thursday, July 25th. The company reported $0.41 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.40 by $0.01. The company had revenue of $182.50 million for the quarter, compared to the consensus estimate of $183.79 million. During the same quarter last year, the company posted $0.33 earnings per share. Dunkin’ Brands Group’s revenue was up 5.9% compared to the same quarter last year. Analysts expect that Dunkin’ Brands Group will post $1.53 EPS for the current fiscal year.
Dunkin’ Brands Group, Inc (NASDAQ:DNKN) is a franchisors of quick service restaurants (QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice cream.
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