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Investing.com - UBS has upgraded Domino’s Pizza (NYSE:DPZ) Enterprises Ltd. (ASX:DMP) from Neutral to Buy, while lowering its price target to AUD22.00 from AUD25.00.
The rating change follows a significant 11% decline in Domino’s share price since the announcement of the CEO stepping down and the Executive Chair taking an interim role.
UBS cited accelerated cost savings as a key factor in its upgrade decision, noting these savings would provide greater support to sales and EBITDA for both Domino’s and its franchisees.
The firm also highlighted Domino’s confirmation regarding FY25E underlying NPAT and its solid balance sheet as supporting factors for the upgrade.
Despite acknowledging challenges with franchisee EBITDA and future earnings projections, UBS believes the risk/reward profile for Domino’s stock has become attractive following the recent share price decline.
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