UPDATE: Oppenheimer Raises PT on Jack in the Box on Additional Upside

In a report published Thursday, Oppenheimer analyst Brian Bittner reiterated an Outperform rating on Jack in the Box JACK, and raised the price target from $36.00 to $45.00. In the report, Bittner noted, “Our analysis supports additional upside and we raise our price target to $45. Attractive risk/reward is highlighted by a steep valuation discount (7.4x EBITDA, vs. group's ~10.8x), despite above-average growth. Shares could jack upwards as: 1) Street estimates increase to fully appreciate transformed earnings leverage at JITB (85% of profits); 2) market reverses ‘negative' valuation oddly applied to Qdoba; 3) new-found FCF is deployed (buybacks, acquisitions); and 4) financial engineering is completed (cost reductions, refranchising southeast market). A multiple in-line with the group would value stock in the mid-$50s.” Jack in the Box closed on Wednesday at $34.34.