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Investing.com - Bernstein SocGen Group has raised its price target on Domino’s Pizza (NASDAQ:DPZ) to $490 from $460 while maintaining a Market Perform rating on the stock. The pizza chain, currently valued at $15.8 billion, trades at a P/E ratio of 27x, which InvestingPro analysis suggests is relatively high compared to its near-term earnings growth potential.
The firm cited Domino’s market share gains, with domestic same-store sales growth of 3.4% versus consensus expectations of 2.5%, and international same-store sales growth of 2.4% versus 1% consensus. This performance aligns with the company’s overall revenue growth of 3.65% over the last twelve months, while 13 analysts have recently revised their earnings expectations upward.
Bernstein expects sales acceleration above consensus for the next 3-4 quarters, driven by the upcoming DoorDash (NASDAQ:DASH) partnership rollout at the end of Q2 2025, continued benefits from the Parmesan stuffed crust pizza launched in Q1 2025, and a loyalty program revamp.
The return of Domino’s $9.99 "Best Deal Ever" promotion could support a value strategy that competitors may struggle to match, according to the research firm, which also noted potential for additional crust flavor innovation and a possible fried chicken platform in the longer term.
Despite the price target increase, Bernstein maintained its Market Perform rating, noting that achieving a 15%+ return on its FY26 estimated EPS of $19.34 would require a multiple of 27x, which would be difficult to sustain in a volatile macroeconomic environment. For deeper insights into DPZ’s valuation metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and detailed valuation models.
In other recent news, Domino’s Pizza reported its second-quarter 2025 earnings, which revealed a slight miss on earnings per share (EPS). The company posted an EPS of $3.81, falling short of the forecasted $3.94, marking a 3.3% negative surprise. However, revenue aligned with expectations, coming in at $1.15 billion. Despite the earnings miss, analysts have maintained a positive outlook on the company’s growth. Citi has maintained its Neutral rating with a $500 price target, highlighting anticipated top-line growth for the remainder of the year. Morgan Stanley (NYSE:MS) raised its price target to $520, citing solid performance and key initiative execution. BTIG reiterated its Buy rating with a $530 price target, noting strong sales growth and significant operating profit upside. These developments suggest continued confidence in Domino’s strategic direction and market position.
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