Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Tuesday, Citi analysts adjusted their outlook on Jack in the Box stock (NASDAQ:JACK), reducing the price target to $47.00 from the previous $53.00. Despite the adjustment, the firm maintained a Neutral rating on the stock. The analysts noted the significant underperformance of Jack in the Box, with InvestingPro data showing a steep 47.25% decline over the past year. The stock’s high volatility is evident with a beta of 1.95, compared to an average 12% drop among other limited-service restaurants (LSRs).
The analysts pointed out that the current valuation of Jack in the Box indicates that investors are anticipating negative revisions to earnings estimates. With the company currently unprofitable over the last twelve months, according to InvestingPro data, the next earnings report, due in just 14 days, will be crucial. The analysts expressed caution regarding the sustainability of any potential relief rally. [Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report.]
Citi’s commentary reflected concerns about the company’s growth strategy, particularly in the face of skepticism from investors. The analysts believe that Jack in the Box’s pitch for unit growth might not be convincing enough to change the current investor sentiment. They also mentioned that the company is facing significant industry challenges, including issues with immigration, rising beef prices, and the difficulty of operating under-scaled or challenger brands in an increasingly value-centric market.
The analysts concluded their remarks by emphasizing that while there might be potential for a short-term improvement in stock performance, the underlying investor doubts and industry headwinds are likely to limit any sustained positive momentum for Jack in the Box shares. Despite these challenges, the company maintains a notable 4.46% dividend yield, offering some compensation for patient investors during this volatile period.
In other recent news, Del Taco has announced its expansion into Indiana, with a 10-unit franchise agreement marking the brand’s 12th new market entry in the past three years. The move is part of Del Taco’s broader growth strategy, which includes franchise opportunities across the country.
Meanwhile, Jack in the Box has been the subject of various analyst reviews. Stifel has adjusted its 12-month price target down to $52.00 from $55.00, citing concerns about increased expenses and pressure on restaurant margins. The firm also revised the earnings per share (EPS) estimate for the fiscal year 2025 to $5.36, slightly below the consensus estimate.
TD Cowen reaffirmed its Hold rating on Jack in the Box shares with a steady price target of $50.00, despite revising its EPS projections for 2025 and 2026 downward. RBC Capital Markets reduced its price target from $70.00 to $65.00, maintaining an Outperform rating. The adjustment followed Jack in the Box’s fourth-quarter 2025 earnings report and initial financial guidance for fiscal year 2025, which did not meet expectations.
Finally, Goldman Sachs reduced its price target to $43.00 from the previous $47.00, maintaining a Sell rating on the stock. The firm noted weaker revenue and restaurant-level margins, despite Jack in the Box surpassing consensus estimates of earnings per share for the fourth quarter of fiscal year 2024. These are the latest developments in the fast-food industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.