Baird analyst Chris O'Cull initiates coverage on Jersey Mike's Subs (NYSE: JMKE) with a Outperform rating and a price target of $27.00.

The analyst comments: “Initiating with an Outperform rating and $27 price target. JMKE offers investors a differentiated, domestically scaled brand with a durable growth profile, considerable global whitespace opportunity, and solid unit economics, checking all the boxes for a compelling restaurant growth investment, in our view. While we acknowledge current valuation metrics are above highly franchised peers, we argue a premium for JMKE shares can be justified by the company's strong growth profile, above-average earnings visibility (supported by healthy near-term operating momentum), and asset light business model (lower degree of capital intensity).”

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Shares of Jersey Mike's Subs closed at $23.86 yesterday.