Jack In The Box: As Story Evolves, Our Love Remains The Same, Says Oppenheimer
In a research report sent to investors today, Oppenheimer analyst Brian Bittner assigned an Outperform rating on Jack In The Box (NASDAQ:JACK), and raised his price target to $79 (from $65), which represents a potential upside of 17% from where the stock is currently trading.
Bittner observed, “Long-loved JACK remains one of our favorites amidst strengthening fundamentals and a valuation with more cranks. Our analysis suggests upside to 4Q14E (ended Sept.) and a solid foundation for ’15E with help from a final refranchising event, tight G&A control and above-average cash use. Higher pension/labor expenses in ’15E elevates model risk versus past years, but we are confident in the core. New $79 price target assumes 12.5x ’15E EBITDA with optionality as Qdoba believers emerge and JITB’s cash flows are more appreciated.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Bittner has a total average return of 15.0% and a 70.7% success rate. Bittner has a 39.1% average return when recommending JACK, and is ranked #243 out of 3318 analysts.