Street Calls of the Week
Investing.com - Piper Sandler reduced its price target on Domino’s Pizza (NASDAQ:DPZ) to $443.00 from $477.00 on Friday, while maintaining a Neutral rating on the stock ahead of the company’s third-quarter earnings report. The pizza chain, currently trading at $405.33 with a market capitalization of $13.76 billion, has seen its shares trade in a range of $397.12 to $500.55 over the past 52 weeks.
The firm noted that investor expectations for Domino’s upcoming third-quarter results anticipate domestic same-store sales to be at least in line with, or potentially moderately better than, the current consensus estimate of +4.2%.
Piper Sandler highlighted concerns within the investment community regarding Domino’s fourth-quarter trends compared to the current consensus estimate of +5.1% same-store sales growth.
The research firm observed that Domino’s shares have underperformed its most direct competitors noticeably over the past approximately 10 weeks.
This underperformance might suggest that significant negativity has already been priced into the stock, according to Piper Sandler’s analysis of the current setup for Domino’s shares.
In other recent news, Domino’s Pizza is gearing up for its third-quarter earnings report, with several investment firms weighing in on the company’s prospects. UBS has reiterated its Buy rating with a $540 price target, highlighting the company’s sustained same-store sales momentum in the United States. Morgan Stanley has also raised its price target to $535, expecting Domino’s to deliver a solid quarter with results exceeding market expectations. Meanwhile, Evercore ISI has maintained an Outperform rating, citing Domino’s competitive edge in the pizza delivery market through strategic promotions and product innovations.
BMO Capital echoes a positive outlook, reiterating an Outperform rating and a $540 price target, anticipating strong U.S. comparable sales in the upcoming report. However, Wells Fargo has lowered its price target to $450, maintaining an Equal Weight rating due to concerns about industry headwinds and the effectiveness of recent promotions. Despite these mixed views, Domino’s is recognized for its market share gains and strategic initiatives. As the company prepares to release its earnings, investors are keenly observing these developments.
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