UPDATE: Bank of America Upgrades Jack in the Box to Buy on Better Sales and Modest Food Cost Inflation

Bank of America raises its rating on Jack in the Box (NASDAQ: JACK) from Underperform to Buy and raises its price target from $21 to $32. Bank of America comments, "We are raising our rating on JACK shares from Underperform to Buy and raising our price objective (PO) from $21 to $32. Our rating change is driven by higher estimates reflecting a combination of better sales at the flagship Jack in the Box brand and much more modest food cost inflation that magnifies the effect on margins. In addition, we are shifting our valuation focus to an EV/EBITDA basis as we believe this is the valuation metric being used for JACK by most investors."JACK closed at $25.87 on Thursday.