Oppenheimer analyst Brian Bittner maintained a Buy rating on Jack In The Box Inc (JACK) today and set a price target of $92. The company’s shares closed yesterday at $81.65.
Bittner noted:
“We expect a sales miss against sell-side’s stale 4Q estimates, particularly after analyzing the slower recent trends across the QSR peers. This does appear reflected in buyside expectations given stock’s underperformance since last print and a valuation that sits lowest in our coverage universe. With two activists now holding nearly 14% of shares (one achieving board status) and capital returns likely to be 20% of market cap over next 12 months, investors are interested again in stock’s setup from here. Downside risk to shares appears mostly tied to any meaningful reduction to ‘19 earnings estimates, which we view as limited given conservative Street assumptions and model’s lower sensitivity to SSS. Maintain Outperform, adjust estimates and reduce PT to $92.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 11.1% and a 67.6% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Cheesecake Factory, and Yum China Holdings.
Currently, the analyst consensus on Jack In The Box Inc is a Moderate Buy with an average price target of $90.33.
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Based on Jack In The Box Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $48.96 million. In comparison, last year the company had a net profit of $29.96 million.
Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is negative on the stock.
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Jack in the Box, Inc. engages in operating and franchising a chain of quick-service and fast-casual restaurants. It operates through the Jack in the Box Restaurant and Qdoba Restaurant business segments.
