Morgan Stanley analyst Brian Harbour has maintained their neutral stance on JACK stock, giving a Hold rating today.
Brian Harbour has given his Hold rating due to a combination of factors influencing Jack In The Box’s current market position. Despite the company reporting better-than-expected results for the first quarter, including stronger RLM and EBITDA, the resignation of CEO Darrin Harris and the recent management changes have introduced uncertainty about the company’s strategic direction. The lack of continuity in the management team over the past few years is a significant concern, prompting a cautious stance.
Additionally, while the company maintained its guidance for key performance indicators for fiscal year 2025, the anticipated challenges in same-store sales for the second quarter and negative trends for both Jack and Del Taco brands suggest potential difficulties in achieving year-end targets. These factors, combined with the undemanding valuation, lead to the decision to maintain a Hold rating with a price target of $45, reflecting a cautious outlook amidst industry pressures and internal uncertainties.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JACK in relation to earlier this year.