JACK - Jack in the Box dips after Gordon Haskett heads to the sidelines with downgrade

Gordon Haskett dropped its rating on Jack in the Box (NASDAQ:JACK) to Hold from Buy after it warned on more modest market share gains in 2022, as well as reduced margin/EPS visibility and higher commodity inflation exposure for the restaurant operator through the Del Taco acquisition. Analyst Jeff Farmer's breakdown: "With JACK trading at a small premium to pre-COVID levels and poised to see a significant increase in company-owned restaurant and revenue mix exposure - we view JACK shares as having shifted to a balanced risk/reward profile." The firm assigned a price target of $96 to JACK vs. the average Wall Street PT of $105.75. The price target is equal to 10X the 2023 EBITDA estimate of $317M. The 10X multiple represents an approximate 10% discount to JACK’s average two-year forward multiple from 2017 to 2019. Shares of Jack in the Box (JACK)  fell 1.27% premarket to $86.01 vs. the 52-week

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Jack in the Box dips after Gordon Haskett heads to the sidelines with downgrade