Brinker International "buy," target price raised

04/30/08 - UBS

NEW YORK, April 30 (newratings.com) - Analysts at UBS maintain their "buy" rating on Brinker International Inc (EAT). 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 one-to-two 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.