Texas Roadhouse Downgraded: Analyst Cites Balanced Risk-Reward After Recent Outperformance
Portfolio Pulse from Lekha Gupta
Piper Sandler analyst Brian Mullan downgraded Texas Roadhouse Inc (NASDAQ:TXRH) to Neutral from Overweight after the stock achieved the $110 price target. The downgrade reflects a balanced risk-reward following TXRH's strong performance since mid-October. The analyst remains cautious about the Full Service restaurant sector for 2024 due to industry challenges. TXRH's Q3 EPS missed estimates, but sales slightly beat forecasts. Shares are currently trading up at $114.13.
December 01, 2023 | 7:51 pm
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NEUTRAL IMPACT
Texas Roadhouse downgraded to Neutral from Overweight by Piper Sandler after reaching the $110 price target. The analyst cites a balanced risk-reward scenario and expresses caution for the sector in 2024.
The downgrade to Neutral suggests that the analyst believes the stock is fairly valued at current levels, and the upside potential is now limited. This could lead to a neutral short-term impact on the stock price as investors digest the news. The cautious outlook for 2024 might be a concern, but the current price action suggests that the market has not reacted negatively to the downgrade.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100