Oppenheimer Thinks Jack In The Box Inc’s Stock is Going to Recover
In a report released today, Brian Bittner from Oppenheimer reiterated a Buy rating on Jack In The Box Inc (JACK), with a price target of $92. The company’s shares closed yesterday at $77.01, close to its 52-week low of $74.19.
“With JACK hibernating in the mid-to-high $70s, our analysis suggests it now trades with sub-10% probability of a take-out. At the same time, short interest has spiked to its highest levels since early-2012. This has created an interesting risk/reward scenario within a restaurant group that currently lacks ideas. In the event of no sale (as consensus anticipates), we expect JACK to simultaneously announce a major buyback and reiterate ’19 SSS and EBITDA guidance. And with valuation already sitting near trough multiples, downside is now limited in a no sale scenario, particularly given likelihood for positive SSS and improved unit openings with refranchising complete.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 11.2% and a 69.8% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Cheesecake Factory, and Yum China Holdings.
Jack In The Box Inc has an analyst consensus of Moderate Buy, with a price target consensus of $89.80.
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Based on Jack In The Box Inc’s latest earnings release for the quarter ending January 31, the company reported a quarterly net profit of $34.18 million. In comparison, last year the company had a net profit of $12.19 million.
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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 segments.