BMO Capital Raises PT on Texas Roadhouse (TXRH) from $155 to $170, Reiterates “Market Perform” Rating

The latest expert update connected Texas Roadhouse, Inc. (NASDAQ:TXRH) was issued connected January 5, 2026, by BMO Capital. TheFly reported that the steadfast raised its terms people connected the banal from $155 to $170, portion reiterating a “Market Perform” rating. Despite the raised target, the firm’s commentary was bearish regarding the sector. It expects the edifice assemblage to proceed facing challenges successful 2026 amid ongoing user spending pressure, borderline constraints, store closure risk, and constricted scope for aggregate expansion. The precocious closed twelvemonth already saw wide banal declines and double-digit reductions successful net outlooks, with the steadfast projecting these headwinds to persist oregon adjacent intensify into 2026.

Meanwhile, Texas Roadhouse, Inc. (NASDAQ:TXRH) has been facing stock terms pressure, with its stock terms declining astir 6.35% since aboriginal August and implicit 10% successful the past six months. However, successful its December 17 update, erstwhile Wells Fargo upgraded the banal to “Overweight,” the steadfast argued that the pullback has created an charismatic introduction constituent contempt short-term outgo pressures. Rising beef costs person weighed connected 2025 net expectations. Still, the steadfast sees these pressures arsenic cyclical alternatively than structural and focuses connected positives: the company’s beardown worth proposition, mid-single-digit postulation growth, and ongoing marketplace stock gains. Despite brushed expectations for the 4th quarter, the steadfast expects stock terms betterment successful aboriginal 2026 owed to easier comparisons, user stimulus, and a projected highest successful beef costs astir Q2 2026. In the firm’s bull lawsuit scenario, the terms people is acceptable astatine $220, assuming costs easiness faster and postulation remains resilient.

Texas Roadhouse, Inc. (NASDAQ:TXRH), a full-service casual-dining edifice chain, offers assorted seasoned and aged steaks.

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