UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Jack in the Box on New Ways to Improve Trends

In a report published Tuesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating on

, and raised the price target from $70.00 to $77.00. In the report, Wunderlich Securities noted, “While speculation of Qdoba's spinoff continues, Jack in the Box (JACK) continues to set a high bar vs. its peers with its craveable new food, accelerating Qdoba trends, and steady performing franchise business model projected to deliver growing FCF, share repurchase, and dividend payout. JACK recently added a new tool to drive traffic: its Instant Win Game incl. >$1.0mm in food and prize giveaways supporting its new Late Night Munchie Meal. We believe compelling promos like these along with Qdoba's accelerating trends, keep JACK well-positioned to outperform most peers. Recently trading at 11.3x our raised 2014 EV/EBITDA vs. its QSR peer avg. at 12.6x, and arguing for valuation metrics in line with its peers, we are raising our target to $77.00 from $70.00, and reiterate our Buy rating.” Jack in the Box closed on Monday at $67.68.