Papa John's (PZZA) PT Lowered to $140 but Oppenheimer Sees a Buying Opportunity

Oppenheimer analyst Brian Bittner lowered the price target on Papa John\'s (NASDAQ: PZZA) to $140.00 (from $155.00) but believes that the first quarter -21% pull-back (vs S&P's -5%) creates a buying opportunity.

The analyst reiterated an Outperform rating, stating "We believe the buy-side bar has been overly reduced on sales concerns and commodity cost increases. Our analysis suggests these worries under-appreciate PZZA's tools in 2022 to: 1) take share and drive solidly positive SSS, 2) hold EBIT margins in face of inflation, and 3) generate EPS upside vs Street's +4.5% growth. Our bullish stance is also enabled by PZZA's 20% valuation discount to DPZ, despite a multi-year runway for AUV expansion and accelerating unit growth."

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