BTIG maintains Domino’s stock Buy rating, $500 price target

Published 24/02/2025, 22:32
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On Monday, BTIG analyst Peter Saleh maintained a Buy rating on Domino’s Pizza (NASDAQ:DPZ) with a steady price target of $500. Saleh’s assessment comes amid discussions of Domino’s Pizza’s potential collaboration with DoorDash (NASDAQ:DASH) and the introduction of new products, including the speculated Stuffed Crust. The partnership discussions come as delivery partner Uber (NASDAQ:UBER) shows strong momentum, with InvestingPro data revealing an impressive 18% revenue growth and a healthy gross profit margin of 33.2% in the last twelve months.

Domino’s Pizza concluded the fourth quarter of 2024 with a 2.7% sales mix from Uber Eats, unchanged from the third quarter, indicating a significant deceleration in sales growth via that channel. The exclusivity agreement with Uber Eats has been extended to May 1, as Domino’s initiates negotiations with DoorDash regarding a possible partnership expected to launch later in the year. According to InvestingPro data, Uber maintains strong operational metrics with a return on assets of 21.9% and positive free cash flow yield.

Saleh notes that the DoorDash partnership could go national by mid-2025, following several market tests in the upcoming months. Despite the delay, Domino’s management still anticipates an additional $1 billion in sales from third-party aggregators, although the target has been revised to 2027 due to a more measured approach in marketing and marketplace strategy.

Furthermore, Domino’s management has confirmed the launch of two new products this year, maintaining their usual product introduction pace. However, they have not verified the launch of Stuffed Crust, a topic of much speculation. The company’s strategic moves and product developments are closely monitored by industry experts as they unfold.

In other recent news, Uber Technologies (NYSE:UBER) has seen several notable developments. Analysts at Oppenheimer raised their price target for Uber shares to $100, citing increased confidence in the company’s fundamentals and a reduced focus on challenges from RoboTaxi services. Similarly, Loop Capital Markets adjusted its outlook, lifting Uber’s price target to $89 while maintaining a Buy rating, highlighting the evolving landscape of autonomous vehicle technology. Piper Sandler also raised Uber’s price target to $87, reflecting a positive outlook based on discussions with the company’s management and future expectations.

Additionally, Uber announced that board member Wan Ling Martello will not seek re-election at the 2025 Annual Meeting of Shareholders. Martello, who has served on Uber’s board since 2017, played a significant role during the company’s initial public offering. Her departure is not due to any disagreements with the company’s operations or policies. In other news, Uber’s CEO, Dara Khosrowshahi, expressed support for U.S. President Donald Trump’s initiative to eliminate taxes on tips, aligning with efforts to benefit service workers.

This comes amid a backdrop of strategic investments, with Bill Ackman’s Pershing Square building a $2 billion stake in Uber, seen as a positive counterpoint to competitive concerns in the autonomous vehicle space. As Uber continues to navigate the competitive landscape, these developments are closely watched by investors and industry observers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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