Barclays Remains a Hold on Jack In The Box Inc (JACK)

By Austin Angelo

In a report released today, Jeff Bernstein from Barclays maintained a Hold rating on Jack In The Box Inc (JACKResearch Report), with a price target of $88. The company’s shares opened today at $83.07.

Bernstein commented:

“We are assuming no strategic transaction, and therefore assume the business operates under their heavily franchised, heavily levered, return of cash model recently implemented. On valuation, JACK is at ~12x ’19 EBITDA, vs. a 9- 15x 3-year range & ~11.5x average. With no news on a strategic transaction, but the potential lifeline still intact, and with 1QF19 upside, we expect the shares will outperform this morning, although heavily influenced by commentary on today’s 11: 30am ET call. We will review our estimates post call.F19 Outlook: Guide continues to culminate in adj. EBITDA of $260-270m, +/-2%. Revenue drivers include Flat to +2% system comp & 1%+ system unit growth, both similar to LSD LT guide.”

According to TipRanks.com, Bernstein is a 5-star analyst with an average return of 8.0% and a 70.2% success rate. Bernstein covers the Services sector, focusing on stocks such as Cheesecake Factory, BJ’s Restaurants, and McDonald’s Corp.

Jack In The Box Inc has an analyst consensus of Moderate Buy, with a price target consensus of $86.50, representing a 4.1% upside. In a report issued on February 11, Wedbush also maintained a Hold rating on the stock with a $85 price target.

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The company has a one-year high of $93.98 and a one-year low of $74.19. Currently, Jack In The Box Inc has an average volume of 615.1K.

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Jack in the Box, Inc. engages in operating and franchising a chain of quick-service and fast-casual restaurants. It operates through the Jack in the Box Restaurant segments.