Citigroup announced on Thursday that they have initiated coverage of restaurant franchise operator, Brinker International, Inc.(EAT).

The firm reported that they have begun coverage of EAT with a “Buy” rating, and a $38 price target. This price target suggests an 18% increase over the stock’s current price of $30.92.

Analysts believe that since short term pressures are already known, the company will have opportunities for growth.

Brinker shares were up 27 cents, or 0.88% during Thursday morning trading. The stock is up 15.5% YTD.

The Bottom Line
Shares of Brinker International (EAT) have a 2.60% dividend yield, based on last night’s closing stock price of $30.77. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.

Brinker International, Inc.(EAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.