UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Jack in the Box on Raised Estimates

In a report published Friday, Bank of America reiterated its Buy rating on Jack in the Box (NASDAQ: JACK), and raised its price target from $32.00 to $38.00.Bank of America noted, “We continue to rate JACK shares Buy and are raising our price objective from $32 to $38 on the heels of surprisingly strong 1Q EPS that was driven by higher margins. We continue to expect rapid operating EPS growth as JACK adjusts its cost and company structure to reflect the shift to a predominantly franchised business model for its flagship brand. Our higher price objective reflects our increased estimates and an expectation that JACK will narrow the gap in EV/EBITDA valuation versus quick service restaurant (QSR) comparables.”Jack in the Box closed on Thursday at $31.50.