Goldman said it is upgrading Brinker (EAT) to neutral from sell based on balanced risk reward following recent selloff. Believe management has capitulated on company's earnings outlook over the next year. Price target at $13.

Cramer: This Is Restaurant Darwinism:
In 18 months, strong companies are going to see significant gains while the weaker eateries hit rock bottom and go out of business, says Jim Cramer.

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I believe the best restaurant chains that are not fast food, notably Darden (DRI) and Panera (PNRA), can be bought, but you are going to have a lag between the pump's decline and now, and that will make these much more dicey. Brinker (EAT) just reported a decent number, add that to the list. I would love to buy Yum! Brands (YUM), but the commodity lag won't let them have a good quarter, although they have already tempered expectations.

Brinker International (EAT) downgraded at UBS. Rating lowered to Neutral from Buy. Price target lowered to $21 from $23. Fiscal 2009 EPS estimates lowered to $1.52 from $1.61.

Goldman said it is upgrading Brinker (EAT) to Neutral from Sell, based on expected free cash flow improvements. Note ongoing weakness in bar and grill restaurants, and believe cash flow will become an increasingly important metric for the sector. Price target raised to $22 from $19.

KeyBanc said it is upgrading Brinker (EAT) to Hold from Underweight based on increased expectations for sales over te next 6 to 12 months. Although consumer traffic counts remain negative, see stabilization and even improvement in 2009. No price target.

The Real Story Wrap: April 22
Stocks in New York were weak for the entire session Tuesday and closed lower as a batch of mixed earnings reports, another record low in the dollar and soaring oil prices put selling pressure on the major averages.

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Eaton boosted its quarterly common payout 16%, to 50 cents a share, from 43 cents. That translates into a current yield of 2.37%. Dividends have been paid without interruption since 1923 and have been raised for six consecutive years. Investors of record Feb. 4 will receive the new quarterly Feb. 22. The stock goes ex-dividend Jan. 31.

Cramer: What's Eating Brinker Shares?
Yet investors are shying away from EAT and fellow profitable companies, and this is yet another sign that this market is brutal, says Jim Cramer.

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Brinker International (EAT) was downgraded from Hold to Underweight, Keybanc said. Company announced poor quarterly same-store sales, and competition should remain high in 2008. $15 price target.