Jack In The Box JACK reported a confusing F4Q10 EPS number below our estimates and consensus. However, if we add back all nonrecurring gains/charges, F4Q10 EPS would have topped estimates.
Equally confusing was management's operating EPS outlook for FY2011, which at first glance is significantly below consensus and Oppenheimer's forecast; however, it also includes expected nonrecurring impairment & other charges.
Oppenheimer believes JACK should trade at a discount to MCD. Therefore, a fair multiple for JACK should be around 15x a "clean" operating EPS number, plus slightly greater than $3.00 in EPS stemming from a DCF value of the next several years of refranchising gains.
Oppenheimer has a Perform rating on JACK
JACK is trading 8% lower at $20.68
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in