Papa John's Price Target Raised to $71 from $66 at BofA

Analysts at BofA Securities have raised their price target on Papa John's International, Inc. (PZZA) to $71 per share from $66 per share.

The revised price target implies an upside of approximately 19% from the current market price of $59.45 per share.

Key Takeaways:

- BofA analysts reiterated their "Buy" rating on Papa John's stock. - The price target increase reflects the company's strong financial performance and growth prospects. - Papa John's has been benefiting from menu innovation, digital ordering initiatives, and international expansion.

Reasons for the Price Target Increase

BofA analysts cited several reasons for raising their price target on Papa John's stock:

- Strong financial performance: Papa John's has consistently exceeded expectations with its financial results. In the most recent quarter, the company reported a 6.2% increase in comparable sales and a 14.4% increase in revenue. - Menu innovation: Papa John's has been successful in introducing new and innovative menu items that have resonated with customers. The company has recently launched a number of new products, including the Epic Stuffed Crust Pizza and the Papadia. - Digital ordering initiatives: Papa John's has made significant investments in digital ordering and delivery. The company's mobile app and website have both seen strong growth in recent months, and the company is now offering delivery through third-party platforms such as Uber Eats and DoorDash. - International expansion: Papa John's is also expanding rapidly internationally. The company currently has over 3,500 restaurants in 50 different countries and territories.

Outlook for Papa John's

BofA analysts believe that Papa John's is well-positioned for continued growth in the years to come. The company has a strong brand, a loyal customer base, and a number of growth initiatives underway.

The analysts also noted that Papa John's is trading at a discount to its peers. The company's current price-to-earnings ratio is 20, compared to an average of 25 for other restaurant chains.

Overall, the analysts at BofA are optimistic about Papa John's prospects and believe that the stock is a good value at the current price.

Disclaimer:

The information contained in this report is for informational purposes only and should not be construed as investment advice. The author and publisher of this report do not recommend the purchase or sale of any security. Investors should always conduct their own research before making any investment decision.