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Stephens says Papa John’s 30% rally in last week may be due to M&A speculation

Stephens says Papa John’s 30% rally in last week may be due to M&A speculation

Stephens analyst Jim Salera notes that Semafor reported this afternoon that Irth Capital Management, which was co-founded by a member of Qatar’s royal family, is considering a take-private bid for Papa John’s (PZZA) estimated to be valued at about $1.4B. The analyst, who notes shares are up 30% over the last week, believes M&A speculation “could have been the primary driver before the news broke.” The firm, which also points out that Irth Capital disclosed a 4.99% stake in Papa John’s last year, has an Overweight rating and $60 price target on the shares, which are up 16% to $50.09 in Thursday afternoon trading.

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