JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, BMO Capital Markets adjusted its price target for Papa John’s International Inc. (NASDAQ:PZZA) stock, lowering it to $60 from the previous $63, while still maintaining an Outperform rating on the shares. According to InvestingPro data, the stock appears undervalued at its current price of $46.25, with analyst targets ranging from $45 to $67. The revision by analyst Andrew Strelzik at BMO Capital comes in light of the company’s future performance expectations, which appear to be facing some challenges.
Papa John’s recently exceeded fourth-quarter earnings per share (EPS) expectations, posting a figure of $0.63, which was $0.13 higher than the consensus. This outperformance was attributed mainly to favorable supply chain profit, contributing to the company’s $2.06 billion in annual revenue. Despite the better-than-expected quarterly results, Papa John’s provided guidance for 2025 that fell below consensus forecasts, particularly in terms of unit growth and EBITDA. InvestingPro analysis shows the company maintains a FAIR financial health score, with detailed metrics available in the Pro Research Report.
The company’s comparable sales outlook aligned with expectations; however, Strelzik noted potential risks due to a difficult competitive environment and consumer backdrop. As a result, BMO Capital has revised its estimates for 2025 downward, anticipating that domestic comparable sales headwinds and necessary investments may constrain Papa John’s performance.
Despite these adjustments, BMO Capital’s stance on Papa John’s remains positive. Strelzik expressed confidence in the long-term potential of the brand and endorsed the company’s turnaround strategy. He believes that the current discounted valuation of Papa John’s stock presents a particularly favorable risk/reward scenario for investors. The Outperform rating indicates that BMO Capital continues to view Papa John’s as likely to outperform the broader market or its sector in the foreseeable future.
In other recent news, Papa John’s International Inc. reported impressive fourth-quarter results for 2024, surpassing analyst expectations. The company achieved earnings per share of $0.63, significantly exceeding the forecast of $0.51. Revenue also outperformed projections, reaching $530.77 million compared to the anticipated $516.29 million. This performance highlights the company’s strategic focus on international expansion and cost management. Additionally, Papa John’s announced plans to invest up to $25 million in marketing and aims for 85 to 115 new restaurant openings in North America for 2025. Analysts from Stephens and Bank of America have shown interest in the company’s international growth and strategic priorities. Furthermore, Papa John’s is actively exploring refranchising opportunities to accelerate development with franchisees. These developments indicate a strategic direction aimed at enhancing profitability and expanding market presence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.