Analyst Eyes Papa John's Comparable Sales Amid Price-Value Concerns, Upgrades Stock To Hold
Portfolio Pulse from Shivani Kumaresan
Stifel analyst Chris O’Cull upgraded Papa John’s International Inc (NASDAQ:PZZA) from Sell to Hold, lowering the price target from $65 to $60, citing reasonable near-term expectations despite challenging competition and a tough category. The analyst highlighted concerns over domestic comparable sales, which were about -1% in the first quarter, and the impact of a value-centric market environment on sales. The revision of the FY24 EPS estimate to $2.57 from $2.65 reflects anticipated slower domestic sales ramp in Q2. PZZA shares rose 1.31% to $63.32.
April 22, 2024 | 5:29 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Stifel upgraded Papa John's to Hold from Sell, lowered price target to $60, and revised FY24 EPS estimate down to $2.57, reflecting concerns over competitive position and domestic sales.
The upgrade to Hold reflects a neutral short-term outlook for PZZA, balancing negative sentiment and market volatility against reasonable near-term expectations. The lowered price target and EPS estimate indicate concerns over competitive challenges and sales performance, which could temper investor enthusiasm. However, the stock's positive price action suggests a mixed market reaction, likely due to the upgrade offsetting the negative adjustments.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100