Should You Buy Darden Restaurants Inc (DRI) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
Buy for a beginner long-term investor right now. DRI is trading near key support (~197/192) with short-term pressure already reflected in the chart, while fundamentals are still growing (Q2 FY2026 revenue/EPS up) and Wall Street just issued multiple meaningful upgrades with higher price targets (235–265). Near-term sentiment is mixed (heavy put volume and notable hedge/insider selling), but for an impatient long-term buyer, the current pullback area is an acceptable entry rather than waiting for a perfect bottom.
Technical Analysis
Trend/Setup: Short-term bearish-to-stabilizing. MACD histogram is negative (-1.893) and expanding lower, signaling downside momentum is still present. RSI(6)=30.736 is near oversold (not deeply oversold, but stretched), suggesting selling may be getting exhausted.
Moving averages: Converging MAs suggest the prior trend is losing strength and could base, but it’s not yet a confirmed uptrend.
Levels: Pivot 205.26 is the key reclaim level for bullish confirmation. Support S1=197.116 (price ~196.5 is essentially testing this zone); next support S2=192.084. Resistance R1=213.404 then R2=218.436.
Interpretation: Technically this is a “buy-at-support while weak” setup (good for long-term accumulation), not a momentum breakout.
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock today.
Analyst Ratings and Price Target Trends
Recent trend: Volatile but improving in the last week due to two significant upgrades. Truist downgraded to Hold (PT cut to $207) and Raymond James downgraded to Market Perform, citing valuation/multiple limits and fewer near-term drivers. Offsetting that, Mizuho upgraded to Outperform (PT raised to $235 from $195) and Melius upgraded to Buy (PT raised to $265 from $240), emphasizing durable traffic/share gains, reinvestment strategy, and delivery as incremental occasions.
Wall Street pros: strong brand positioning and share gains, potential segment tailwinds, improving comps/checks, long-term initiatives.
Wall Street cons: commodity inflation and margin compression, harder compares, and debate that the stock may be fairly valued near term.
Influential/political trading: No recent congress trading data available.
Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200 USD and a high forecast of 261 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200 USD and a high forecast of 261 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 196.500
Current: 196.500
