Analysts Favor a ‘Buy’ Recommendation for Jack in the Box



Target price

As of June 29, 2017, Jack in the Box (JACK) was trading at $97.66. The stock price might have factored in analysts’ estimates. In this part, we’ll look at analysts’ target price and recommendations.

Analysts expect Jack in the Box’s stock price to touch $115.79 in the next 12 months, which represents a potential return of 18.6%.

The target price and potential returns of Jack in the Box’s peers are as follows:

  • McDonald’s (MCD) – $158.60 with a return potential of ~3.6%
  • Restaurant Brands International (QSR) – $55.46, which represents a fall of 10.3% from its current stock price
  • Wendy’s (WEN) – $16.46 with a return potential of 3.6%
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Analysts’ ratings

Of the 17 analysts that follow Jack in the Box, 52.9% recommend a “buy,” 41.2% recommend a “hold,” and 5.9% recommend a “sell.” On June 2, 2017, Wells Fargo upgraded the stock from “market perform” to “outperform.” The financial services company expected a target price of $125. On May 18, 2017, Keybanc downgraded the stock from “sector weight” to “overweight.” On the same day, Telsey downgraded the stock from “outperform” to “market perform” and lowered its price target from $125 to $118.

Jack in the Box’s stock price moves in tandem with analysts’ ratings. When analysts raise their target price, Jack in the Box’s stock price moves up and vice versa.

If the target price is higher than the company’s current stock price, it doesn’t mean an automatic “buy.” Investors should carefully analyze the various parameters discussed in this series before making any investment decisions.


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