Jefferies Maintains Jamba (JMBA) Hold Rating

Jefferies & Company analysts Jeff Farmer, Imran Ali and Danielle Tierney maintained their Hold rating for shares of Jamba Inc (Nasdaq: JMBA), with a price target of $3 per share.

The analysts noted that Jamba Inc has announced many licensing agreements over the last year and acknowledged the opportunity but said that they currently review it as a "show-me" story.

The Jefferies & Company analysts wrote, "we've modeled $13.4M in EBITDA in 2010 and $15.5M in 2011. We view our 2011 EBITDA estimate as aggressive when considering that we expect JMBA to refranchise ~20% of company unit base by the end of 2011, which means that revenue will likely fall by 10% even with positive SSS both this year and next. Our 2011 EBITDA estimate also assumes that JMBA can cut its G&A spending by more than 10% for a third-consecutive year and that royalty revenue will grow by more than 25% in 2011 (also no lay up)."