Piper Sandler initiated coverage of Jersey Mike’s Subs (NYSE: JMKE) with an overweight rating and a price target of $29, implying a 22% upside from the current share price of $23.86.
The firm highlighted domestic unit growth as the primary driver for expansion, noting the company’s potential to more than double its current store count of 3,200 locations across all 50 U.S. states. Piper Sandler also pointed to medium- to long-term opportunities in international markets, alongside potential capital return programs in the short to medium term.
Jersey Mike’s raised $301 million in its initial public offering, proceeds used primarily to reduce debt. The IPO was priced near the midpoint of its indicative range, with shares initially trading above the opening price before retreating below the debut value.
Other analysts have also initiated coverage. Baird assigned an Outperform rating with a $27 target, while UBS set a buy rating and a $28 target, projecting 10% revenue growth over the next three years and a 14% compound annual growth rate in EBITDA. RBC Capital assigned an Outperform rating with a $28 target based on enterprise value relative to estimated fiscal 2027 EBITDA. Stifel maintained a buy rating, and Bernstein SocGen Group assigned a Market Perform rating with a $26 target.
InvestingPro data shows Jersey Mike’s gross profit margin at 65.77%, with a market capitalization of $7.58 billion. Bernstein SocGen Group noted the company’s consistent same-store sales growth over the past two decades.
