KeyBanc Raises Price Target on Papa John's (PZZA), Guidance Looks Conservative and New Store Design Looks Promising
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Price: $23.32 --0%
Rating Summary:
13 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
13 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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KeyBanc is reiterating its Buy rating on shares of Papa John's (NASDAQ: PZZA) and is raising its price target from $33 to $36 following the company's Q1 conference.
The firm came away from the conference feeling that the company's FY11 EPS and SSS guidance is extremely cautious as the company itself said it was. PZZA is not raising its guidance as its still early in the year.
The company comments that the promotional environment has let up slightly this year from last, but still remains. PZZA plans to stick with its quality pizza advertising as it has been working for them and as it seems to be what customers now look for.
During the conference Papa Johns offered additional commentary on its lobby redesign initiative. The firm comments, "All company stores are expected to have the new design in place by the end of the year, and management stated that franchisees have shown a lot of interest, with 375 orders already in place. The Company estimates the cost of the redesigns at $8,000-$15,000 per unit with a one- or two-day expected install period per store. We believe the redesign can improve consumer perception of the brand and perhaps drive incremental visits beginning in 2H11."
KeyBanc is raising its FY11 EPS estimate from $2.15 to $2.17 and is lowering its Q2 estimate by $0.01 to $0.52. The firm is reiterating its FY12 estimate of $2.67.
For more ratings news on Papa John's click here and for the rating history of Papa John's click here.
Shares of Papa John's closed at $31.50 yesterday.
The firm came away from the conference feeling that the company's FY11 EPS and SSS guidance is extremely cautious as the company itself said it was. PZZA is not raising its guidance as its still early in the year.
The company comments that the promotional environment has let up slightly this year from last, but still remains. PZZA plans to stick with its quality pizza advertising as it has been working for them and as it seems to be what customers now look for.
During the conference Papa Johns offered additional commentary on its lobby redesign initiative. The firm comments, "All company stores are expected to have the new design in place by the end of the year, and management stated that franchisees have shown a lot of interest, with 375 orders already in place. The Company estimates the cost of the redesigns at $8,000-$15,000 per unit with a one- or two-day expected install period per store. We believe the redesign can improve consumer perception of the brand and perhaps drive incremental visits beginning in 2H11."
KeyBanc is raising its FY11 EPS estimate from $2.15 to $2.17 and is lowering its Q2 estimate by $0.01 to $0.52. The firm is reiterating its FY12 estimate of $2.67.
For more ratings news on Papa John's click here and for the rating history of Papa John's click here.
Shares of Papa John's closed at $31.50 yesterday.
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