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Investing.com - TD Cowen has reduced its price target on Domino’s Pizza (NASDAQ:DPZ) to $500.00 from $510.00 while maintaining a Buy rating on the stock. The pizza chain, currently trading at $424.23 and near its 52-week low, maintains a consensus Buy rating from analysts with targets ranging from $340 to $597, according to InvestingPro data.
The adjustment comes as TD Cowen acknowledges softening sales in the current quarter to date, which the pizza chain’s management believes reflects industry-wide trends rather than company-specific issues.
Despite the near-term headwinds, TD Cowen expressed confidence in Domino’s outlook, noting that downside risk for the stock remains limited as long as the company maintains its guidance for same-store sales growth of 3% or higher in 2026.
The research firm highlighted several proactive sales initiatives that performed well in the third quarter, including profitable value offerings, aggregator partnerships, and the introduction of stuffed crust pizza.
These strategic sales drivers are expected to contribute positively to the company’s performance in 2026, supporting TD Cowen’s continued Buy recommendation despite the modest reduction in price target.
In other recent news, Domino’s Pizza reported third-quarter earnings that exceeded analysts’ expectations. The company achieved earnings per share (EPS) of $4.08, surpassing the forecasted $3.96. Additionally, Domino’s Pizza posted revenue of $1.15 billion, slightly above the anticipated $1.14 billion. Following these results, Goldman Sachs reiterated its Buy rating on Domino’s Pizza stock, maintaining a price target of $530.00. These developments reflect a positive earnings surprise for the company. Despite the upbeat financial performance, the stock experienced mixed reactions in the market. The premarket trading showed a slight decline, contrasting with the previous day’s closing. These recent developments highlight the company’s financial strength and analyst confidence.
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