JACK - Jack in the Box lands bullish rating from Cowen

Cowen upgrades Jack in the Box (JACK) to an Outperform rating after having slotted at Market Perform. The confidence on JACK is based on its more consistent sales execution and the opportunity for unit development upside. "Our upgrade is premised on a more focused plan to drive sales which we expect to generate 2% LT annual comp growth. Combined with opportunities to accelerate store development to 2%+, we expect JACK's 33% FY2 EV/EBITDA valuation discount vs QSR peers to narrow. We raise 2021-23E comps to 6%, 2% & 2% from 4.5%, 1.5% & 1.5%; with upside to consensus EBITDA driven by leveraging franchise expenses," says analyst Andrew Charles. The firm raises its price target to $120 from $94. The new PT is about 13.5X the 2022 EV/EBITDA estimate. Shares of JACK are down 2.69% premarket to $91.74. Jack in the Box is due to report earnings in the middle part

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Jack in the Box lands bullish rating from Cowen