Evercore ISI initiated coverage of Jersey Mike’s Subs (NYSE: JMKE) on Tuesday, assigning an outperform rating and a $28 price target, representing a 17% premium to the stock’s $23.86 closing price. The firm’s valuation is anchored on 29 times estimated 2028 earnings per share and a 19.5 times enterprise value-to-EBITDA multiple for the same year.
The outperform rating is supported by a projected 15% long-term earnings per share growth, yielding a target PEG ratio of about 2.0, a modest premium to the franchised restaurant sector’s average PEG of 1.7. Evercore ISI highlighted Jersey Mike’s gross profit margin of 65.77%, as reported by InvestingPro, as a key justification for the valuation.
The initiation follows a wave of bullish analyst coverage from other firms. Mizuho initiated coverage with an outperform rating and a $31 price target, citing potential to exceed sales and EBITDA growth expectations through 2027. Piper Sandler assigned an overweight rating with a $29 target, emphasizing the company’s scale and growth trajectory. Baird initiated with an outperform rating and a $27 target, pointing to brand strength and global expansion prospects.
UBS maintained a buy rating with a $28 target, projecting 10% revenue growth over the next three years and a 14% compound annual EBITDA growth rate. RBC Capital initiated coverage with an outperform rating and a $28 target, based on the company’s enterprise value relative to estimated 2027 EBITDA.
