Jack In The Box Received its Third Buy in a Row

By Ryan Adsit

After Jefferies and Oppenheimer assigned a Buy rating to Jack In The Box in the last month, the company received another Buy, this time from Wedbush. Analyst Nick Setyan reiterated a Buy rating on Jack In The Box (NASDAQ: JACK) today and set a price target of $125. The company’s shares opened today at $105.11.

Setyan observed:

“The Wedbush View: We expect 2H:17 comp reacceleration, the benefit from refranchising and SG&A savings, and share repurchases to result in EPS at or above the midpoint of guidance. We also view a potential separation of the two brands as a viable path towards further value creation. EPS ahead of consensus despite weaker than expected SSS growth. Adj. EPS of $0.98 above $0.91 consensus despite weaker than expected co-owned SSS growth of (2.4%) at JIB and (5.9%) at Qdoba vs. (2.0%) and (2.3%) cons., respectively. System comps fared better, down (0.8%) at JIB and (3.2%) at Qdoba, vs. (0.9%) and (2%) cons., respectively.”

According to TipRanks.com, Setyan is a 4-star analyst with an average return of 7.4% and a 62.5% success rate. Setyan covers the Services sector, focusing on stocks such as Popeyes Louisiana Kitchen, Buffalo Wild Wings, and Abercrombie Fitch.

Currently, the analyst consensus on Jack In The Box is Moderate Buy and the average price target is $114.14, representing an 8.6% upside.

In a report issued on May 3, Jefferies also reiterated a Buy rating on the stock with a $120 price target.

Jack In The Box’s market cap is currently $3.22B and has a P/E ratio of 26.59. The company has a book value ratio of -6.7475.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Jack in the Box, Inc. operates and franchises a chain of quick-service and fast-casual restaurants. It operates through the Jack in the Box and Qdoba Mexican Grill segments. The Jack in the Box segment operates quick-service restaurants that offer a selection of products targeted at the adult fast-food consumer, including hamburgers, tacos, specialty sandwiches, drinks, real ice cream shakes, salads, and side items. The Qdoba Mexican Grill segment operates fast-casual restaurants that feature custom orders as well as a variety of catering options. The company was founded by Robert Oscar Peterson in 1951 and is headquartered in San Diego, CA.