Piper Sandler initiated coverage of Jersey Mike’s Subs on Friday with an Overweight rating and a price target of $29.00, implying approximately 22% upside from the current share price of $23.86.
The firm’s initiation follows a series of analyst assessments from major institutions, reflecting growing interest in the sandwich chain following its initial public offering last year. Piper Sandler cited domestic unit growth as the primary driver, noting rational reasons to believe the company can more than double its current store count. The firm also highlighted potential capital return programs over the near-to-medium term and international expansion opportunities over the medium-to-long term.
Jersey Mike’s Subs, which operates 3,200 restaurants across all 50 U.S. states, has maintained consistent same-store sales growth over the past two decades, according to Bernstein SocGen Group. The company’s gross profit margin stands at 65.77%, based on InvestingPro data, underscoring its operational efficiency.
Other financial firms have also weighed in on the stock. Baird initiated coverage with an Outperform rating and a $27.00 target, while UBS assigned a Buy rating with a $28.00 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 $28.00 target, and Stifel rated the stock a Buy, noting the $301 million raised in its IPO, which was used primarily to reduce debt. Bernstein SocGen Group, however, offered a Market Perform rating with a $26.00 target.
Jersey Mike’s Subs listed on the NYSE under the ticker JMKE with a market capitalization of $7.58 billion. The IPO, which raised $301 million, was priced near the midpoint of its range, with shares initially trading higher before settling below the offering price.
