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Jack in the Box downgraded to Sell from Neutral at Northcoast

Northcoast analyst Jim Sanderson downgraded Jack in the Box (JACK) to Sell from Neutral with a $20 price target The firm says it has lost confidence in the company’s potential to turn around the business. Del Taco sales and margins have deteriorated to levels that make refranchising or a sale unattractive, the analyst tells investors in a research note. Northcoast believes that burdened with higher overhead and interest expense to carry Del Taco, Jack in the Box fasces structural headwinds amid competitive pressures that will be difficult to fix in the near term.

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