Update (10:00 a.m.): Updated with Wednesday market open information.
NEW YORK (TheStreet) -- Jefferies raised its target price on Jack In The Box (JACK) to $62 and set a "buy" rating. The firm noted that accelerating sales and margin, combined with cost synergies, should increase operating results.
"We believe JACK can be worth $100 in 3-4 yrs as it realizes above-trend EPS growth via continued momentum at JIB; remaining cost synergies; and importantly, accelerating sales & margins at Qdoba, which we think is being underappreciated at its current implied valuation of 5.5x C14E EBITDA," Jefferies wrote in a research note. "As operating results improve, Qdoba will become a larger portion of the enterprise & should garner a higher multiple (Fast Casual avg 14-15x)."
The stock was rising 1.84% to $53.67 shortly after the market opened on Wednesday.
Separately, TheStreet Ratings team rates JACK IN THE BOX INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JACK IN THE BOX INC (JACK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."