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Investing.com - BofA Securities resumed coverage of Jack in the Box (NASDAQ:JACK) with a Buy rating and set a price target of $22.00. The stock, currently trading at $17.50, sits near its 52-week low of $16.53, down over 60% from its high of $54.42.
The firm’s analysis notes that Jack in the Box faces industry-wide challenges, including persistent traffic declines from lower-income consumers and a more recent slowdown among middle-income customers.
BofA Securities points out that Jack in the Box experiences additional pressure due to its higher exposure to Hispanic consumers, which is 1.7 times the industry average, a demographic whose spending retrenchment has been particularly pronounced.
High-frequency data indicates steady deterioration has continued, but the firm notes that Jack in the Box’s unchanged fiscal year 2025 same-store sales growth guidance (negative low-single to mid-single digits) suggests the company has given itself cushion to manage through continued pressure.
BofA Securities believes there could be upside potential if the restaurant chain’s renewed focus on value resonates with consumers.
In other recent news, Jack In The Box reported its fiscal third-quarter 2025 earnings, which did not meet analyst expectations. The company posted earnings per share (EPS) of $1.02, missing the forecasted $1.17, and reported revenue of $332.99 million, which was below the expected $340.68 million. Piper Sandler responded by lowering its price target for Jack In The Box to $19.00, maintaining a Neutral rating, following a reported decline in same-store sales for both Jack in the Box and Del Taco brands. Goldman Sachs reiterated its Sell rating with an $18.00 price target, citing the weaker-than-expected earnings report. Stifel also maintained its Hold rating, expressing concerns about same-store sales weaknesses. Morgan Stanley kept its Equalweight rating and a $23.00 price target, highlighting limited confidence in a near-term recovery. These developments reflect the challenges Jack In The Box is facing in improving its financial performance.
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