Raymond James initiated coverage of Jersey Mike’s Subs on Monday with an Outperform rating and a price target of $29.00, reflecting a 16% premium to the fast-casual sandwich chain’s last close.
Analyst Brian Vaccaro estimated the stock’s fair value at $30.24 per share using a discounted cash flow model. The firm’s $29 target assumes a 24 times EV/EBITDA multiple for 2027, below the stock’s historical 30.94 times multiple but above its projected 20 times for next year.
Jersey Mike’s, which trades at a $7.58 billion market capitalization, maintains gross margins near 66% and delivers a 40% return on franchisee cash investments, according to Raymond James. The analyst highlighted the company’s long-term growth narrative, driven by digital marketing initiatives, menu innovation and a differentiated brand positioning against direct sandwich competitors.
Wolfe Research, TD Cowen and Evercore ISI also initiated coverage this week, assigning Peerperform, Buy and Outperform ratings respectively. Their price targets ranged from $26.00 to $31.00. BTIG maintained its Buy rating with a $28.00 target.
Wolfe Research projects EBITDA rising to $402 million in 2026, $459 million in 2027 and $518 million in 2028, underpinning the bullish outlooks. Vaccaro acknowledged near-term challenges, including soft traffic trends in the limited-service restaurant sector and a potential moderation in same-store sales growth following the conclusion of the Chicken Salad limited-time offer, scheduled to end in the third quarter.
