Barclays reiterates Underweight rating on Domino’s Pizza stock at $420 target

Published 21/07/2025, 13:54
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Investing.com - Barclays (LON:BARC) maintained its Underweight rating on Domino’s Pizza (NASDAQ:DPZ) with a price target of $420.00, according to a research note published Monday. The pizza chain, currently valued at nearly $16 billion, is trading above InvestingPro’s Fair Value estimate, with notably high P/E and EBITDA multiples relative to peers.

The firm expects Domino’s shares to outperform the market in morning trading, though performance could be influenced by additional information provided during the company’s 8:30 AM ET earnings call.

Barclays noted that any stock gains would likely be driven by better-than-expected U.S. and international comparable sales growth and adjusted EBITDA figures.

These positive factors may be partially offset by an adjusted earnings per share shortfall, which the firm attributes to headwinds from the company’s DPC Dash investment.

The research note also pointed out that Domino’s made no mention of forward guidance in its initial earnings release.

In other recent news, Domino’s Pizza reported stronger-than-expected same-store sales growth in both the U.S. and international markets. The U.S. comparable sales grew by 3.5%, surpassing Citi and Wall Street expectations, while international sales increased by 2.4%, outperforming projections. Despite the sales success, the company faced a decline in margins, attributed to costs related to third-party delivery services and promotions. Morgan Stanley (NYSE:MS) maintained its Overweight rating with a $514 price target, citing sequential improvement in performance and positive momentum. BMO Capital and UBS also reiterated their positive outlooks with $540 price targets, anticipating continued sales momentum and market share gains. Meanwhile, Citi kept a Neutral rating with a $500 price target, expressing caution over Domino’s strategy beyond its partnership with DoorDash (NASDAQ:DASH). Melius Research initiated coverage with a Hold rating, noting the company’s strong operational scale but limited near-term stock upside. These developments reflect a mix of optimism and caution among analysts regarding Domino’s future performance.

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