Papa John’s Int’l, Inc. PZZA has been in focus over the past few months, with several analysts revisiting their ratings.
The demand for pizza remains unchanged, with softer comps reflecting a “normalization of demand after two years of above-trend growth,” according to BofA Securities.
The Papa John’s Analyst: Sara Senatore initiated coverage of Papa John’s with a Buy rating and a price target of $103.
The Papa John’s Thesis: The pizza demand normalization has mostly passed, and Papa John’s comps are likely to return to being steady in the “low- to mid-single-digit range,” Senatore said in the initiation note.
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“PZZA is less penetrated in some of the most populous MSAs, suggesting room for continued development,” the analyst wrote.
“Internationally, assuming consumption levels relative to GDP reach rates set in the most seasoned markets, PZZA could add over 1,300+ stores in its top-4 developed markets outside the US and over 2,000 stores in its top-5 emerging markets,” she added.
PZZA Price Action: Shares of Papa John’s were by 2.18% to $84.88 on Wednesday morning.