The PZZA Party Continues
- April 22, 2021
Reiterate Outperform; Papa John's International, Inc.
Following their updated analysis, Oppenheimer analysts continue to highlight Papa John's International, Inc. as their top mid-cap pick.
Investors' fear into tough comparisons creates a low bar for comps, but recent evidence drives our analysts' more optimistic outlook for 2021.
Beyond an improving near-term setup, Oppenheimer analysts are also attracted to:
- An overlooked acceleration in unit growth.
- Multi-year upside case for AUVs.
- Drivers for positive EBITDA revisions through 2022.
Our analysts believe Papa John's International, Inc. risk-reward skews favorably, particularly with its 10% EV/EBITDA valuation discount to peers, and above-average balance sheet optionality. Raising estimates and reiterate $125 price target.
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