In a report published Monday, Piper Jaffray analyst Nicole Miller Regan downgraded the rating on Darden Restaurants, Inc. (NYSE: DRI) from Overweight to Neutral, and lowered the price target from $55.00 to $50.00.

In the report, Piper Jaffray noted, “On Friday, activist investors officially gained all 12 Board seats following the annual shareholder meeting vote. Following this wholesale change in the Board (and potentially in executive leadership) we are taking a more cautious stance and downgrading DRI shares to Neutral as we look for more clarity on strategy among incoming leadership. That said, and assuming limited disruption from management transitions, we remain confident in the sustainability of the Darden portfolio of brands over the long-term. We are lowering our price target to $50 based on 20x our unchanged FY16 EPS estimate (vs $55 prior on 22x EPS prior). We note this price target equates to relatively peak ~10x EV/EBITDA multiple. This multiple balances our concerns around wholesale leadership changes and the potential for a disruption of the recent OG momentum.”

Darden Restaurants, Inc. closed on Friday at $48.37.

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