BofA Securities Downgrades Papa John\'s (PZZA) to Underperform, 'Management turnover increases NT uncertainty'

BofA Securities analyst Sara Senatore downgraded Papa John\'s (NASDAQ: PZZA) from Neutral to Underperform with a price target of $34.00 (from $42.00).

The analyst comments "We lower our PO to $34 (vs $42 prior) as we apply the current 1.0x multiple (prior 1.1x) relative to an equal weighted S&P (implies 21.2x absolute vs 22.4 prior) to our forward EPS estimate (2Q27-1Q28: $1.61). While PZZA’s multiple sits at the low end of its historical range, multiples have compressed across LSR. Notably, YUM’s recent sale of Pizza Hut (we estimate ~4-5x EBITDA for PH ex China) also suggests limited upside to PZZA’s multiple (~9x EBITDA). PZZA’s domestic business is healthier than PH’s, but its int’l business is smaller and less well established. We see more NT upside elsewhere."

For an analyst ratings summary and ratings history on Papa John\'s click here. For more ratings news on Papa John\'s click here.

Shares of Papa John\'s closed at $33.49 yesterday.

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