Jack in the Box initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of Jack in the Box with a Hold rating and $71 price target. While Jack in the Box’s valuation is inexpensive, expectations are low and SSS trends have been solid, the ongoing noise from Del Taco refranchising limits visibility into the earnings power of the business and likely remains an overhang, the analyst tells investors in a research note. The firm expects Jack in the Box to lower long-term unit growth targets, though this is likely anticipated, and thinks limited unit growth is priced in.