UPDATE: KeyBanc Capital Markets Initiates Coverage of Jack in the Box with Buy Rating, $40 PT

In a report published Friday, KeyBanc Capital Markets initiated coverage of Jack in the Box

with a Buy rating and a $40.00 price target. KeyBanc noted, “We believe the Company is on track to essentially double its operating EPS by FY14, a year earlier than management is targeting $2.00 per share. Shares have improved in recent weeks as Jack in the Box continues to demonstrate SRS and profit improvements, but we believe share appreciation will continue as G&A is right-sized to fit the highly-franchised business model, the re-franchising program comes to a completion and Qdoba's brand awareness builds.” Jack in the Box closed yesterday at $27.62.