Earlier this week, the Louisville, KY-based pizza chain reported better-than-expected 2015 fourth quarter earnings.
The company projected that international comparable sales would rise by 5% to 7% during 2016. The guidance matches last year's outlook, which signals that Papa John's underlying trends remain stable, Jefferies said.
"Management has a high level of confidence in its ability to navigate the more intense competitive environment," the firm added.
However, Jefferies lowered its price target due to contracting multiples in the group, the firm said.
Papa John's stock closed up 9.48% to $59.60 on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PZZA