Papa John’s price target lowered to $78 from $84 at KeyBanc

KeyBanc lowered the firm’s price target on Papa John’s to $78 from $84 to reflect the risk associated with recent management turnover, while keeping an Overweight rating on the shares. The firm notes sentiment on Papa Johns remains poor, and the trajectory of the stock in the near-term is highly dependent on its performance in Q2. Expectations for Q1 same-store sales growth appear to be at the low single-digit negative level and the recent departure of CEO Rob Lynch was a huge loss for the company at a time when it could ill afford to make mistakes, KeyBanc says. While investors remain skeptical, the firm remains confident in the “Back to Better 2.0” strategy, which is currently underway.