Jack in the Box's (JACK) proposed turnaround plan that includes strategic alternatives for its Del Taco brand as well as the closing of up to 200 underperforming restaurants reduces downside risk for the stock at current levels, Oppenheimer said in a Monday note.

The company's "Jack on Track" plan that was unveiled on April 23 could also improve Jack's balance sheet and "simplify the investment story," the analysts said.

"Risk to reward now tilts more favorably-particularly if management successfully executes strategies to improve financial flexibility, " Oppenheimer said.

The company's pre-announced Q2 results and revised 2025 guidance that were provided last month reduce uncertainty, but detailed impacts of the restructuring will not be addressed until Q3 in August, according to the note.

Oppenheimer has an outperform rating on the stock with a $44 price target.

Price: 28.46, Change: +1.54, Percent Change: +5.72