NEW YORK (TheStreet) -- Shares of Bloomin' Brands (BLMN - Get Report) are rising 2.51% to $17.55 in pre-market trading on Monday after the restaurant operator's stock rating was upgraded to "outperform" from "neutral" at Credit Suisse.
The firm also raised its price target to $21 from $17 on the parent company of Outback Steakhouse and Carrabba's Italian Grill as analysts see an earnings per share upside.
Declining beef prices and an improving Brazilian real could help support earnings per share, while same store sales are expected to recover following the company's menu, marketing, technology and other investments, Credit Suisse said in an analysts note this morning.
"[I]f fundamentals improve, the stock has significant upside on multiple expansion and rising investor confidence. If fundamentals do not improve, strategic action may come to the fore," analysts added.
The company's first quarter results are expected to be weak because of difficult comparable figures as well as overall macro volatility, analysts noted.
Tampa, FL-based Bloomin' Brands will release its fiscal 2016 first quarter financial report on April 26 before the market open.
Separately, Bloomin' Brands has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's strengths, such as reasonable valuation levels and notable return on equity, and its weaknesses, including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.
You can view the full analysis from the report here: BLMN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.