Papa John's Earnings And Growth Prospects Make It A Favorable Risk/Reward Play, Says Analyst

KeyBanc analyst Eric Gonzalez reiterated an Overweight rating on the shares of Papa John's International Inc PZZA and lowered the price target from $92 to $90.
The price target cut reflects slightly lower international segment profit/slightly higher general and administrative expenses.
The analyst believes sentiment remains largely negative fueled by the absence of EPS growth this year, the potential for negative earnings revisions, management turnover, and limited confidence in unit growth targets.
However, the analyst believes the risk/reward skews positive for investors looking past near-term volatility.
The analyst noted the recent development agreements/disclosures in the company's Franchise Disclosure Document (FDD) give further visibility on the unit growth pipeline.
The analyst thinks the brand's premium positioning, innovation track record, unit economics, and digital capabilities should help the company deliver superior returns over the long term.
Also Read: Papa John's Eyes Large Presence In India By 2033; Expands Partnership With PJP Investments
Price Action: PZZA shares are trading higher by 0.82% at $75.90 on the last check Tuesday.

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