Papa John's International (NASDAQ:PZZA) Earns Underperform Rating from Bank of America

Key Points

• Bank of America reiterated an Underperform rating on Papa John’s International and cut its price target to $34 from $42, implying only about 1.5% upside from the prior close.
• Other analysts have been mixed, but the overall view is cautious: Papa John’s now carries a consensus Hold rating with a consensus target price of $36.50.
• The company recently reported mixed quarterly results, missing EPS and revenue estimates and posting a 7.7% year-over-year revenue decline for the quarter.

Papa John's International (NASDAQ:PZZA - Get Free Report)'s stock had its "underperform" rating reiterated by equities researchers at Bank of America in a note issued to investors on Monday,Benzinga reports. They currently have a $34.00 price target on the stock, down from their prior price target of $42.00. Bank of America's target price points to a potential upside of 1.52% from the company's previous close.

PZZA has been the topic of several other research reports. Mizuho decreased their price target on Papa John's International from $34.00 to $33.00 and set a "neutral" rating on the stock in a research note on Monday, May 11th. Stephens reiterated an "overweight" rating and issued a $40.00 target price on shares of Papa John's International in a report on Wednesday, July 1st. Weiss Ratings cut Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 18th. Benchmark decreased their target price on Papa John's International from $50.00 to $45.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. Finally, Wall Street Zen raised shares of Papa John's International from a "sell" rating to a "hold" rating in a research report on Saturday, June 6th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $36.50.

Papa John's International Price Performance

Shares of Papa John's International stock opened at $33.49 on Monday. Papa John's International has a 1-year low of $29.55 and a 1-year high of $55.74. The stock has a market cap of $1.10 billion, a P/E ratio of 40.35, a P/E/G ratio of 1.86 and a beta of 1.12. The stock's 50 day simple moving average is $33.92 and its 200-day simple moving average is $34.87.

Papa John's International (NASDAQ:PZZA - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.08). Papa John's International had a net margin of 1.37% and a negative return on equity of 10.71%. The company had revenue of $478.61 million during the quarter, compared to analysts' expectations of $485.51 million. During the same quarter in the previous year, the company earned $0.36 earnings per share. The firm's quarterly revenue was down 7.7% compared to the same quarter last year. As a group, research analysts expect that Papa John's International will post 1.51 EPS for the current fiscal year.

Institutional Investors Weigh In On Papa John's International

Several hedge funds have recently made changes to their positions in PZZA. Anson Funds Management LP purchased a new stake in Papa John's International during the 1st quarter valued at approximately $2,431,000. Arkadios Wealth Advisors purchased a new position in shares of Papa John's International in the 1st quarter valued at approximately $650,000. California State Teachers Retirement System increased its holdings in shares of Papa John's International by 22.3% in the first quarter. California State Teachers Retirement System now owns 47,121 shares of the company's stock valued at $1,527,000 after purchasing an additional 8,584 shares during the period. Royal Bank of Canada increased its holdings in shares of Papa John's International by 76.8% in the first quarter. Royal Bank of Canada now owns 60,624 shares of the company's stock valued at $1,964,000 after purchasing an additional 26,335 shares during the period. Finally, Excelsior Advisor Network LLC purchased a new stake in shares of Papa John's International during the first quarter worth approximately $212,000.

About Papa John's International

Papa John's International, Inc is a leading American pizza restaurant chain known for its focus on high-quality ingredients and consistent product offerings. Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown to operate thousands of restaurants across the United States and in more than 40 international markets. Papa John's restaurants are primarily franchised, supported by a network of corporate-owned outlets that together drive brand standards, operational guidance and marketing efforts.

The core menu at Papa John's centers on a variety of hand-tossed and pan pizzas made with a signature stone-baked crust and topped with real cheese, vine-ripened tomato sauce and premium meats and vegetables.

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