Citi analyst Jon Tower has adjusted his outlook on Texas Roadhouse (TXRH, Financial), lowering the rating from Buy to Neutral. This change comes alongside a revised price target, now set at $164, down from the previous $213.
Despite Texas Roadhouse being recognized as one of the stronger brands within Citi's coverage, Tower cites emerging concerns about potential challenges in traffic and comparable sales. The analyst notes that current data does not point to any immediate catalysts that could drive improvements in these areas.
Additionally, Citi expresses caution over rising beef costs, which could pose risks to the company's financial performance. Without consistent increases in customer traffic or significant sales growth, these cost pressures might impact the company’s earnings outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Texas Roadhouse Inc (TXRH, Financial) is $186.79 with a high estimate of $215.00 and a low estimate of $139.20. The average target implies an upside of 14.63% from the current price of $162.95. More detailed estimate data can be found on the Texas Roadhouse Inc (TXRH) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Texas Roadhouse Inc's (TXRH, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Texas Roadhouse Inc (TXRH, Financial) in one year is $158.96, suggesting a downside of 2.45% from the current price of $162.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Texas Roadhouse Inc (TXRH) Summary page.
