The firm said it raised its rating on the restaurant company as it believes Darden's operating improvements have the potential to drive significant earnings.
Darden operates the restaurant chains Olive Garden, Long-Horn Steakhouse, Yard House and Seasons 52, among others.
"We see potential for significant EPS upside as DRI implements wide-ranging improvements in operations, the cost structure, and capital efficiency. Our analysis points to potential bull-case earnings of ~$4.60 by FY17 (May YE), ~40% above the current consensus," Credit Suisse said in an analyst note.
Shares of Darden Restaurants are up by 0.94% to $67.70 in pre-market trading on Friday morning.
Separately, TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARDEN RESTAURANTS INC (DRI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."