Jack In The Box (JACK) PT Lowered to $80 at Stifel

May 27, 2022 1:47 PM EDT
Get Alerts JACK Hot Sheet
Price: $59.25 +0.46%

Rating Summary:
    12 Buy, 13 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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Stifel analyst Chris O'Cull lowered the price target on Jack In The Box (NASDAQ: JACK) to $80.00 (from $100.00) while maintaining a Hold rating following earnings.

The analyst commented, "We are updating our model following JACK's F2Q earnings report. While we expect the company will provide quarterly pro forma financials for Del Taco aligned to JACK's FY21, we have incorporated the currently-available information into our projections though assumptions may change once more historical data are available. We expected the company to weather similar levels of inflationary pressure as its industry peers, but we were surprised by the magnitude of margin compression—exacerbated by recently acquired stores in underperforming markets—and its anticipated impact on FY22 earnings. Pricing is now expected in the HSD for the year (upper end of the previous range), and rapidly-implemented staffing initiatives in company stores will be extended to the franchise system to address labor shortages that led to weaker SRS results in F2Q. In light of the ongoing margin pressure, we reduced our FY22 EPS to $6.10 (from $7.00) and our TP to $80."

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