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Jim Cramer Says BofA’s Note About Papa John’s (PZZA) Had “Suboptimal Reasoning”

We recently published 16 Stocks Jim Cramer Mentioned In An Episode Where He Said OpenAI Could Beat All Big Tech Giants. Papa John’s International, Inc. (NASDAQ:PZZA) is one of the stocks Jim Cramer recently discussed.

Cramer commented on Papa John’s International, Inc. (NASDAQ:PZZA) after co-host Carl Quintanilla mentioned a Bank of America analyst note that has cut the share price target. In its note, BofA analyst Sara Senatore downgraded Papa John’s International, Inc. (NASDAQ:PZZA)’s shares to Neutral from Buy and cut the share price target to $50 from $62. The analyst commented that income disparity in the US was growing and the pressure on younger workers meant that full-service restaurant stocks might be better off due to their established customer base. Cramer discussed the note in the context of eating at Chili’s and how he’d spent more money at the restaurant. However, he wasn’t completely on board with BofA’s reasoning for Papa John’s International, Inc. (NASDAQ:PZZA):

“And Papa John’s is doing well but the pizza area is crowded. They’re saying that people who go out have more money than those who doing well. . .Brinker, my problem with that is, Chili’s, it’s ten dollars. It’s like, no,  when I go to Chili’s I don’t spend a lot of money. I spend a lot of money versus say like a pizza. But I thought the reasoning there was suboptimal reasoning, suboptimal reasoning, definitely.”

While we acknowledge the risk and potential of PZZA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PZZA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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