PZZA - Papa John's International named a top pick at BTIG into earnings
BTIG says it believes Papa John's ([[PZZA]] -2.2%) shares have multiple levers available to increase shareholder value, including menu innovation, margin expansion and financial engineering.Analyst Peter Saleh says PZZA has an opportunity to relever the balance sheet to raise capital for future growth and returns to shareholders. This year, the chain is seen significantly benefiting from a rising royalty rate, ballooning advertising budget, as well as lower driver insurance costs at corporate stores.BTIG boosts its Q4 same-store sales estimate for PZZA on its view that broader industry weakness benefited Papa John's and expects that dynamic could continue in the early part of 2021.The firm has a Buy rating and "top pick" designation" on Papa John's, as well as a price target of $115 into the Q4 earnings report due out in a few weeks.
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Papa John's International named a top pick at BTIG into earnings