Street View: Brokerages initiate upbeat coverage of Jersey Mike's on digital, expansion bets

At least 17 brokerages initiate coverage on Jersey Mike's Subs JMKE.N with positive ratings following the sandwich chain's IPO last month that raised about $1 billion.

BTIG launches coverage with buy and a $28 price target, citing steady market-share gains, store expansion and brand strength that could help Jersey Mike's overtake Subway as the leading U.S. sandwich brand.

Jefferies cites a long runway for restaurant expansion and opportunities to increase customer visits through loyalty programs, digital tools and marketing initiatives, initiating with buy and a $29 price target.

TD Cowen also starts with a buy rating and a $26 price target, pointing to the company's steady same-store sales growth and high-single-digit unit growth.

Truist Securities says a larger social-media push could attract younger customers, alongside substantial U.S. and international expansion potential, initiating coverage with buy and a $30 price target.

Meanwhile, Morgan Stanley initiates coverage with overweight and a $29 price target, arguing sandwiches are less indulgent and may be better positioned than burgers, pizza or fried chicken as GLP-1 use and consumer preferences evolve.

Shares of Jersey Mike's closed at $23.86 on Friday. They are up about 9.2% since their debut in July.