Oppenheimer Reiterates Outperform on Jack in the Box (JACK) Following 4Q and Strong Guidance
Oppenheimer reiterated an Outperform rating and $95.00 price target on Jack In The Box (NASDAQ: JACK) following the company's 4Q earnings report. Adjusted EPS of $0.62 was lower than Street's $0.65 estimate. JACK initiated a strong 2016 earnings outlook, well above Street's $3.54. Stock has gone from $100 to low- $70's despite only upwards earnings revisions and now trades at a relatively attractive sub-10x next fiscal year's EBITDA.
Analyst Brian Bittner commented, "With investors fearful into the print, JACK initiated a strong '16 earnings outlook, well above Street's $3.54 (which already included a 53rd week). Bears will argue that '16 comp guidance appears aggressive (+2%-4%), but may misunderstand that "tested" menu upgrades soon unload. Commodity cost guidance at JITB appears conservative giving extra cushion to the EPS guide, in our view. Stock has gone from $100 to low- $70's despite only upwards earnings revisions and now trades at a relatively attractive sub-10x next fiscal year's EBITDA. Raising '16E EPS and initiating '17E EPS well above Street. Conference call is 11:30ET tomorrow with an update to L-T outlook."
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Shares of Jack In The Box closed at $69.99 yesterday.