In a report released yesterday, Zachary Fadem from Wells Fargo maintained a Hold rating on Domino’s Pizza (DPZ – Research Report), with a price target of $420.00.
Zachary Fadem’s rating is based on several factors impacting Domino’s Pizza’s future performance. The anticipated partnership with DoorDash, starting in May, is expected to bring incremental benefits, but these have already been factored into existing projections. The overlap with Uber’s user base and potential cannibalization of Domino’s own platform suggest that the impact may not be as significant as initially hoped.
Additionally, while franchisee feedback on third-party transactions is positive and operational improvements like the introduction of stuffed crust are underway, these developments are not seen as major game-changers. External factors such as tariffs and immigration policies appear to have minimal impact, and while there is some concern about anti-American sentiment abroad, it is too early to quantify any effects. Overall, these elements contribute to a cautious outlook, justifying the Hold rating.
In another report released on March 19, Bernstein also reiterated a Hold rating on the stock with a $440.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DPZ in relation to earlier this year.