UPDATE: KeyBanc Capital Markets Initiates Coverage of Papa John's with Buy Rating, $58 PT

In a report published Friday, KeyBanc Capital Markets initiated coverage of Papa John's International

with a Buy rating and a $58.00 price target. KeyBanc noted, “We believe PZZA shares are most suitable for GARP-style investors seeking: 1) roughly 17% EPS growth fueled by 7% annual unit growth, positive SRS and 5-6% reduction in share count sourced from $65 million-$75 million in annual free cash flow; 2) high-margin, annuity-like cash flow stream as PZZA is about 84% franchisee owned; and 3) potential upward revisions to EPS and cash flow estimates.” Papa John's International closed yesterday at $48.72.