Stifel initiated coverage of Jersey Mike’s Subs on Thursday with a buy rating and a $27 price target, valuing the sandwich chain above its current trading level of $23.86.
Analyst Matthew Smith highlighted the company’s consistent same-store sales growth and expanding store pipeline as key drivers of expected high-single-digit revenue growth. He also noted improving marketing capabilities as a contributing factor to the outlook. Gross profit margins stood at 65.77% over the last twelve months, while revenue totaled $742 million.
The stock, listed on the NYSE under ticker JMKE, was priced at $23 per share in its May IPO, opening at $21 and closing its first day near $23.86. Stifel’s $27 target places it below the highest consensus estimate of $30 but above the $26 target from Bernstein SocGen and JPMorgan.
Jefferies and Morgan Stanley both assigned overweight ratings with $29 targets, while JPMorgan cited a 2027 analysis in its assessment. The IPO generated $301 million in net proceeds, primarily used to reduce debt.
Shares of Jersey Mike’s Subs last traded at $23.86, roughly 13% below Stifel’s target and within the range of prior analyst valuations.
