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Oppenheimer sees more upside for Jack in the Box

Published 08/09/2018, 09:35 AM
© Reuters.  Oppenheimer sees more upside for Jack in the Box
JACK
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  • Oppenheimer says there is a strong case for buying shares of Jack in the Box (JACK +6.8%) below the $100 level as the firm's math indicates a path for the company to +$8.50/share free cash flow and +$6 EPS.
  • "These goals are smartly built using conservative assumptions, yet still make valuation uniquely attractive," writes lead analyst Brian Bittner. "Simultaneously, SSS turned positive in 3Q and are now accelerating into 4Q, a critical data point to reinstall investor confidence. This is without re-establishing taco value, which could be further incremental. Risk/reward should become more appreciated with a now more digestible investment story," he adds.
  • Oppenheimer has an Outperform rating on the restaurant stock and price target of $105.
  • JACK is up 6.59% in opening trading following its solid Q2 earnings report.
  • Now read: Party City +4.8% post Q2 results, reaffirms FY2018 guidance


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