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Tuesday, on Wall Street, Guggenheim updated its stance on Domino’s Pizza (NASDAQ:DPZ) by increasing the price target to $460 from the previous $450, while maintaining a Neutral rating on the company’s shares. Currently trading at $468.27, with a P/E ratio of 27.72, InvestingPro analysis indicates the stock is trading slightly above its Fair Value. The adjustment comes in light of revised earnings per share (EPS) estimates for 2025 and 2026.
Guggenheim analysts adjusted their 2025 EPS projections slightly upward by five cents and their 2026 EPS forecasts by fifty cents, with InvestingPro data showing FY2025 EPS forecast at $17.44. This half-dollar increase for 2026 includes a 45 cent addition due to the inclusion of a 53rd week in the fiscal calendar. The firm’s updated estimates place them marginally above the consensus for the first and second quarter U.S. same-store sales, with investors eagerly awaiting the next earnings report on April 28, 2025.
Despite the positive adjustment in same-store sales forecasts, Guggenheim’s EPS predictions for both years remain slightly below the consensus of other Street analysts. The firm attributes this conservative stance to an upcoming dilutive maturity that they believe will impact earnings. For deeper insights into Domino’s valuation and financial health metrics, including 8 additional exclusive ProTips, access the comprehensive Pro Research Report available on InvestingPro.
The analysts also noted their plans to host Domino’s Pizza management in Boston in early May for a series of meetings. This event could provide further insights into the company’s performance and strategies moving forward.
Domino’s Pizza stock has been the subject of financial analysts’ assessments, with price targets and ratings guiding investor expectations. Guggenheim’s latest price target suggests a watchful approach, indicating a balance between recognition of the company’s potential for sales growth and caution due to potential dilution.
In other recent news, Domino’s Pizza is preparing to announce its first-quarter earnings, with Citi analysts projecting a slight decline in U.S. same-store sales by 0.5%, diverging from the market’s general expectation of a 0.4% increase. Citi has also adjusted its price target for Domino’s shares from $500 to $480, maintaining a Neutral rating. Meanwhile, Domino’s has entered a strategic partnership with DoorDash (NASDAQ:DASH), set to launch in May 2025 in the U.S. and later in Canada, where Domino’s drivers will deliver orders placed on DoorDash’s Marketplace. This collaboration aims to enhance sales and customer reach, especially in suburban and rural areas, tapping into a $1 billion opportunity as noted by Domino’s COO Joe Jordan.
RBC Capital Markets continues to support Domino’s with an Outperform rating and a $500 price target, based on the adoption of the stuffed crust offering and new store equipment designed to improve production efficiency. The firm remains optimistic about Domino’s long-term growth prospects. Additionally, TD Cowen has reaffirmed a Buy rating with a $490 target, citing a robust domestic expansion plan for 2025, which includes projections for 210 new store openings. This expansion surpasses both TD Cowen’s and Consensus Metrix’s estimates, highlighting Domino’s ambition to increase its U.S. presence significantly. These developments reflect a dynamic period for Domino’s as it navigates growth strategies and partnerships to bolster its market position.
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