Papa John’s International (NASDAQ: PZZA) is the biggest gainer in the restaurant sector after Bank of America started announcing the pizza business with a Buy rating.
BofA’s positives on PZZA were established in a shift that is expected to grow in line with low to mid-single digit growth, expanding the number of franchisees and company growth. The company also thinks that the bright economy and global growth will enable the company to meet its expectations.
Researcher Sara Senatore and the team still see that the demand for pizza has not really changed with the aggregators because the delivery orders enter the food in the restaurant / food itself or prepare it at home.
“In fact, we’re looking at the smaller pizza recipes as reflecting the stabilization of demand after two years of strong growth. Now that most of the time has passed, we expect Papa Johns comps to return to the low to mid-single digit range.”
BofA set a $103 price target on PZZA for a more than 25% return from Tuesday’s closing price. Shares of PZZA rose 3.30% get the first sale on Wednesday.
Looking for a writer for Alpha Wolf Reports and the new beef at Papa John’s.