Oppenheimer Reiterates Outperform on Jack in the Box (JACK) Following 4Q and Strong Guidance

Oppenheimer reiterated an Outperform rating and $95.00 price target on Jack In The Box (NASDAQ: JACK) following the company's 4Q earnings report. Adjusted EPS of $0.62 was lower than Street's $0.65 estimate. JACK initiated a strong 2016 earnings outlook, well above Street's $3.54. Stock has gone from $100 to low- $70's despite only upwards earnings revisions and now trades at a relatively attractive sub-10x next fiscal year's EBITDA.

Analyst Brian Bittner commented, "With investors fearful into the print, JACK initiated a strong '16 earnings outlook, well above Street's $3.54 (which already included a 53rd week). Bears will argue that '16 comp guidance appears aggressive (+2%-4%), but may misunderstand that "tested" menu upgrades soon unload. Commodity cost guidance at JITB appears conservative giving extra cushion to the EPS guide, in our view. Stock has gone from $100 to low- $70's despite only upwards earnings revisions and now trades at a relatively attractive sub-10x next fiscal year's EBITDA. Raising '16E EPS and initiating '17E EPS well above Street. Conference call is 11:30ET tomorrow with an update to L-T outlook."

For an analyst ratings summary and ratings history on Jack In The Box click here. For more ratings news on Jack In The Box click here.

Shares of Jack In The Box closed at $69.99 yesterday.

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