Sandwich chain Jersey Mike’s is set to go public on Thursday at $23 per share. Research firm Melius Research became the first to initiate coverage with a buy rating and a $30 price target, implying 30% upside from the IPO price. The company sold 43.5 million shares in the IPO, raising $1 billion. Melius highlighted Subway’s decline, which is closing roughly 700 restaurants per year, as a major opportunity for Jersey Mike’s to gain market share, noting that the chain already generates more than 40% of Subway’s U.S. sales with only 15% as many stores.
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