Analysts Favor a ‘Hold’ Rating for Jack in the Box



Analysts’ recommendations

Of the 17 analysts that follow Jack in the Box (JACK), 47.1% favored a “buy,” while 52.9% favored a “hold” recommendation on August 9. None of the analysts favored a “sell” recommendation. On the same day, analysts forecast an average target price of $99.0, which represents a return potential of 6.7% from its current stock price of $92.76.

Since the announcement of its third fiscal quarter earnings, Jeffries has raised its target price from $95 to $100. Strong third fiscal quarter earnings appear to have prompted analysts to raise their target price for Jack in the Box. The stock price moves in tandem with analysts’ ratings. When analysts increase the target price, the company’s stock price tends to increase and vice versa. Currently, Jack in the Box is trading below analysts’ average 12-month target price. However, analysts’ average target price doesn’t mean an automatic “buy.” Investors are advised to analyze analysts’ expectations before making any investment decisions.

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Peers comparisons

For Jack in the Box’s peers, the stock prices and return potentials are:

  • McDonald’s (MCD) has a target price of $183.62 with a return potential of 15.3%.
  • Wendy’s (WEN) has a target price of $19.47 with a return potential of 9.6%.
  • Restaurant Brands International (QSR) has a target price of $69.88 with a return potential of 11.6%.

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