Domino’s Pizza stock well-positioned for growth, UBS reiterates Buy rating

Investing.com - UBS has reiterated its Buy rating and $540.00 price target on Domino’s Pizza (NASDAQ:DPZ) ahead of the company’s third-quarter results scheduled for October 14. According to InvestingPro data, analyst targets for the stock range from $340 to $594, with the company currently trading near its 52-week low of $397.12.

UBS notes that despite a challenging industry environment, Domino’s Pizza appears well-positioned for sustained same-store sales momentum in the United States extending into 2026, supported by multiple initiatives and accelerating global store development. The company has demonstrated solid execution with revenue growth of 3.65% over the last twelve months and maintains a GOOD financial health rating according to InvestingPro’s comprehensive analysis.

The firm indicates investor expectations for third-quarter U.S. same-store sales range from approximately 4.5% to 5%, compared to consensus estimates of 4.2%, while acknowledging that trends may have slowed in the fourth quarter to date.

UBS reports that Domino’s shares have remained largely range-bound this year despite solid results, citing investor concerns about difficult comparisons for key initiatives in 2026 and uncertainty about upcoming catalysts following recent promotions like Parmesan Stuffed Crust, the DoorDash partnership, and the $9.99 Best Deal Ever.

Trading at approximately 21 times projected 2026 earnings, UBS expects continued traffic and sales momentum, potential new catalysts emerging in 2026, and market share gains to support share price appreciation over the coming quarters.

In other recent news, Domino’s Pizza is receiving varied attention from major financial firms regarding its upcoming earnings and market performance. Morgan Stanley has increased its price target for Domino’s to $535, maintaining an Overweight rating, and anticipates a solid quarter with results surpassing market expectations. Meanwhile, Wells Fargo has lowered its price target to $450, maintaining an Equal Weight rating, due to industry headwinds and concerns over future growth, despite acknowledging mid-single-digit growth in comparable sales for the third quarter. Evercore ISI continues to rate Domino’s as Outperform, with a $520 price target, highlighting the company’s competitive edge in the pizza delivery market through low-cost leadership and innovative promotions.

BMO Capital also maintains an Outperform rating with a $540 price target, citing strong U.S. sales momentum and expecting the third-quarter results to exceed consensus expectations. UBS has reiterated its Buy rating and a $540 price target, expressing confidence in Domino’s ability to meet its long-term same-store sales target of over 3% for 2026 and beyond. The varying price targets and ratings reflect differing opinions on Domino’s market strategies and future growth potential. Investors are closely watching these developments as Domino’s prepares to release its third-quarter earnings report.

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