BUZZ-Papa John's gains as Wedbush upgrades on 'too cheap' valuation

Reuters2023-09-01

** Papa John's International's shares up 3.4% at $78.28 early Fri after Wedbush upgrades pizza chain to "outperform" from "neutral"

** Brokerage hikes PT by $15 to $95, implying 25% upside to stock's Thurs close

** PZZA's current 16% discount to peers' median EV/2024 EBITDA multiple of 16.3x unwarranted, given expectations for an improved near- to medium-term same-store sales $(SSS.SI)$ growth trajectory, potential for margin expansion, Wedbush writes in note to clients

** Now, 12 of 17 analysts rate PZZA "buy" or "strong buy", 4 rate "hold" and 1 has "sell" recommendation

** Median PT of $95 up from $90 a month ago

** With move on the session, stock down 5% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-6380))

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