Papa John's (PZZA) PT Lowered to $60 but BMO Capital Likes 'The Turnaround Approach'

BMO Capital analyst Andrew Strelzik lowered the price target on Papa John's (NASDAQ: PZZA) to $60.00 (from $63.00) while maintaining a Outperform rating.

The analyst commented: "2025 Performance Likely to be Challenged, but We Like Turnaround Approach; Following January comp pre-announcement, 4Q24 EPS of $0.63 exceeded consensus by $0.13 largely reflecting favorable supply chain profit. PZZA provided 2025 guidance below consensus for unit growth and EBITDA. Comp outlook met expectations, although we see risk in challenging competitive and consumer backdrop. We lower 2025 estimates as we expect domestic comp headwinds and investments to limit performance, and our target falls to $60. However, we remain Outperform as we believe focus is in right areas, remain confident in long-term brand potential, and believe discounted valuation creates particularly favorable risk/reward."

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