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Fly News Breaks for February 27, 2020
PZZA
Feb 27, 2020 | 07:30 EDT
Credit Suisse analyst Lauren Silberman raised the firm's price target on Papa John's to $71 from $66 and keeps an Outperform rating on the shares. The analyst notes that the company delivered a "strong" quarter, with Q4 North America same-store sales of 3.5% the best in three years. While she viewed the quarter positively, Silberman thinks the stock pullback was driven by investor expectations for quarter to date commentary and lower than expected flow-through on the guide. The analyst continues to have confidence in the trajectory of the turnaround, with a menu-led strategy contributing to accelerating same-store sales, improving franchisee profitability and accelerating unit growth over time, with outsized earnings growth and potential for strategic optionality supportive of the premium multiple.